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NewSat Deal With Dodo |
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Written by Adam Gosling
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Thursday, 06 September 2007 |
Satellite services provider, NewSat has signed a A$30 million plus
broadband Internet deal with ISP Dodo which will see up to 12,000
remote users get access to the Internet under the Broadband Guarantee
scheme.
The five year deal estimated contract value of A$30 million in revenues to NewSat over the first nine months alone.
The new service, under the somewhat clumsy name "Dodo Satellite powered
by NewSat" is scheduled to commence October this year and will deliver
what the companies say will be "the lowest price and best performance
benchmark ever in consumer broadband internet satellite connections for
remote Australia".
"Dodo Satellite powered by NewSat" will offer a range of seven
connection plans, all capped, with a starting price of below $20 per
month. This move is set to revolutionise the price of broadband
satellite connection in the country by slicing approximately 30 percent
from the current starting prices for a 256/64kbps speed connection.
However, the service is still subject to funding approval. NewSat
has participated in earlier government funded broadband subsidy
schemes, but accepts its technology was not specifically aimed or
priced at consumers and accordingly had little impact on the market.
Indeed its last funding application was declined.
In response NewSat has deployed "Ku Plus" technology using a satellite
breakthrough technology from the US called ViaSat Surf Beam hub and
ancillary technology which not only makes rapid deployment of
connections possible, but enables the offering of extremely desirable
price points for consumers as well as delivering enhanced quality of
service.
Additionally, in a further show of confidence in the outcomes of the
agreement, Dodo Satellite Pty Ltd has joined the NewSat share registry
as a significant stock-holder by subscribing for $500,000 of ordinary
shares in NewSat Limited, as well as performance-based options.
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