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NewSat Deal With Dodo Print E-mail
Written by Adam Gosling   
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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