What's Happening?
NBN Co, the national network builder, is strategizing to maintain its share in the broadband satellite market by transitioning to Amazon's low Earth orbit (LEO) satellite services. The company plans to offer these services at wholesale prices comparable
to or lower than its current Sky Muster and Sky Muster Plus models. This pricing will be maintained for two years post-launch, adjusted for inflation. Customers who opt for the new service within 90 days of its launch will benefit from these introductory prices. NBN Co has released discussion papers to consult with the industry ahead of proof-of-concept trials scheduled for July. The company aims to retire its Sky Muster satellites by 2030, with the transition to Amazon LEO expected to cover approximately 300,000 users. Initial trials are set to begin in Tasmania, with full customer migration anticipated by the end of 2027.
Why It's Important?
This transition to Amazon's LEO satellite services represents a significant shift in the broadband satellite market, potentially enhancing internet speed and reliability for remote and regional areas. By offering competitive pricing and maintaining current service levels, NBN Co aims to retain its customer base while upgrading its technology infrastructure. This move could set a precedent for other network providers, influencing the broader telecommunications industry. The collaboration with Amazon also highlights the growing importance of partnerships in deploying advanced satellite technologies. For consumers, this could mean improved internet access and service quality, particularly in underserved areas, thereby reducing the digital divide.
What's Next?
NBN Co plans to conduct trials in Tasmania between July and September, with a full rollout expected by the fourth quarter of 2027. The company will replace existing Sky Muster equipment at no cost to customers, ensuring a smooth transition. The decommissioning of current geostationary satellites is slated to begin in 2028. Stakeholders, including regional communities and delivery partners, are encouraged to prepare for the transition. The success of these trials and the subsequent rollout will depend on Amazon's global deployment schedule for its LEO satellites. NBN Co's continued collaboration with Amazon will be crucial in meeting these timelines and ensuring service continuity.
