An open letter from NewSat CEO, Adrian Ballintine, criticising NBN Co's handling of the tender process and short-sightedness in restricting its shortlist to exclude operators of satellites capable of the minimum mandated transmission rate.

"Something is dramatically amiss with NBN"

June 8 2010

An open letter from Adrian Ballintine

Owned by 8,000 Australians, NewSat is Australia's leading satellite / space entity.

NewSat provides services for significant organizations the world over, including vital communications for the defence and mining sectors. It is entrusted to perform complex and mission critical Telemetry Tracking & Control activities, ensuring hundreds of geo-stationery satellites remain working and fixed in position.

Its teleport facilities are regarded by the US military as amongst the best in the world. No other satellite/space entity in Australia can boast these credentials.

How is it possible, that NewSat, an industry leader in so many ways, globally recognised for its services and expertise, could be ignored by a Government looking to implement a national broadband network and supply high quality communications to all Australians?

Ignored to the extent that NBN has chosen to not respond to NewSat's application in any shape or form.

It is a disgrace and an abuse of power.

NewSat invested substantial resources in its application to NBN to provide satellite services. With the knowledge of its recent success as runner up in the World Teleport Association, best teleports in the world, NewSat was confident that it could play an integral part in the Governments' NBN scenario, especially as a teleport provider.

Not once since applications closed has anybody from NBN contacted NewSat. Under the rules of engagement, contacting NBN deemed an applicant disqualified. Needless to say, NewSat was caught between a "rock and a hard place".

NewSat has also been praised by many international space bodies for its intentions to launch Australia's first non-Government, non-foreign owned satellite. The satellite is on track for launch in the last quarter of 2012, a schedule endorsed by its international advisors and suppliers.

NewSat is an Australian entity. Our Government seems determined to look to foreign shores for solutions, without even considering what it has at home.

Something is dramatically amiss within NBN.

Every Australian should be alarmed at the Government's blatant disregard for services at is disposal and failure to fully consider all its options.

NewSat had grounds for concern regarding NBN's view of its intentions. In a document anonymously sent to NewSat in January this year, entitled "Improving broadband in rural and remote Australia: A plan to 2014", no mention was made of NewSat and it was clear that a decision had already been made to work with a foreign based satellite operator. The document was sent to NewSat because a senior member of the advisory team attached a note to the plan saying, "NewSat has been shafted by NBN".

The ABG scheme administered by the DBCDE was formed to provide broadband services to persons unable to access "metro comparable" broadband service. NewSat was not able to secure a license to participate in the scheme because Government officers did not believe NewSat was a viable entity. This was despite the fact that NewSat was a listed entity of more than 10 years standing with no debt and world class assets. The Temasek owned Optus and IPStar and their associates were provided almost exclusive entry into the ABG club.

ABG was rorted and many of its licensed participants failed. As those anointed by the department failed, NewSat went from strength to strength. In fact, NewSat's last eight quarters have demonstrated growth on growth. NewSat has no doubt that the same department officers who cruelled its ABG chances were responsible for planting the early seeds of doubt in the heads of the NBN appointees.

NewSat always does hard yards. Whether it's supporting disadvantaged Aboriginal communities in remote Australia or providing the hard working citizens of Fitzroy Crossing with voice and data services, NewSat can be relied upon.

The Federal Government has demonstrated time and again that it absolutely cannot. This is yet another example.

Regards,

Adrian.

For further information:

Adrian Ballintine
Chief Executive Officer
NewSat Limited
Tel: 03 9674 4644

James Aanensen
PRX
Tel: 0410 518 590

This letter was picked up by the Australian on June 22nd 2010.

Click here to read Mitchell Bingemann's piece