Optus scores eight year $100m satellite services contract from the ABC

Stuart Corner
Thursday, 18 June 2009 05:13

IT Industry - Strategy

Optus has scored and eight year contract from the ABC worth $100 million for the continued provision of satellite services, but competition in the satellite market is getting tougher.

Under the agreement Optus will continue to manage the distribution of the ABC’s digital television transmission nationwide, carriage of interchange signals between ABC studios in capital cities and regional centres and support the broadcast of analogue television and radio services across Australia and to direct-to-home audiences in rural and remote Australia.

The deal is the second nine-figure, multiyear contract for Optus this week. On Tuesday 16 June Optus was named as the winner of a four year managed services contract from the Australian Taxation Office which, according to Optus, will be worth close to $187m

The ABC has been a major user of Australia's domestic satellites since the first one was launched by Aussat (since acquired by Optus) in 1985. Vicki Brady, managing director of Optus Wholesale and Satellite said:  “With the Optus C1 satellite, the first two of the D-series satellites now in operation and the Optus D3 satellite set to launch later this year, Optus’ satellite management, experience and expertise continue to be in demand."

The latest expansion to the Optus satellite fleet, Optus D3, will provide an additional 30 percent in capacity across the fleet and is planned to be launched from French Guiana in the second half of 2009.

However, competition in the satellite services market is heating up. Global satellite operator, Intelsat, announced this week plans to launch 11 satellites before the end of 2012, one of which, the Intelsat 19 satellite, to be located at 166º E, will have increased Ku-band capacity optimised for direct-to-home (DTH) and network services applications in Australia.

The satellite's C-band transponders will provide additional capacity for distribution of international video content throughout Asia-Pacific with reach to the Western United States. The Ku-band payload will also support demand for mobility and enterprise network applications across the region.