Australia - Mobile Satellite Services

Synopsis

Mobile satellite services are crucial in Australia to ensure universal access to basic telephony products in very remote areas. Australia’s experience of satellites dates back to the 1950s and 1960s. Australian entrepreneur, the late Kerry Packer, was among the first to recognise the commercial potential of satellite communications. In 1977 he commissioned a report to investigate the launch of an Australian satellite. Subsequently Aussat was established by the government in 1981 and was later sold after huge financial losses to Optus in 1992.

In 2012 Optus and Telstra are still the major infrastructure providers of mobile satellite services though the majority of terrestrial-based satellite services continue to be fixed services. Mobile satellite services are required for operations such as sea-based communications and outback mining companies, where there is limited or no 2G/3G mobile phone coverage and fleet-tracking services. However service charges remain high, which generally restricts growth in the use of services.

In this report BuddeComm provides an overview of the market, an overview of the operators and some statistics on users and revenue. For information on satellite-based internet services and providers, see separate report: Australia - Telecoms - High-speed satellite services.

Companies mentioned

Companies mentioned in this report include – Telstra, Optus, Pivotel, Thuraya, Globalstar, Just Mobile, Vodafone, Think Mobile, TracerTrak, Iridium, Inmarsat, Reward Mobile, AST Group.

Table of Contents

• 1. Synopsis
• 2. Mobile satellite services
  • 2.1 Introduction
• 3. Public subsidies and regulation
  • 3.1 Overview
  • 3.2 Mobile satellite service band plan
  • 3.3 Mobile satellite phone subsidies
    • 3.3.1 Background information
    • 3.3.2 Satellite Phone Subsidy Scheme
• 4. Major operators
  • 4.1 Telstra
    • 4.1.1 Innovative satellite and 3G solutions – mid-2010
    • 4.1.2 Inmarsat and maritime communications
    • 4.1.3 Iterra (VSATs)
    • 4.1.4 Iridium satellite
  • 4.2 Optus
    • 4.2.1 MobileSat
    • 4.2.2 Thuraya
  • 4.3 Pivotal Group
    • 4.3.1 Company Overview
    • 4.3.2 Satellite services
    • 4.3.3 Cellular Mobile Services
  • 4.4 VIX QuikTrak
    • 4.4.1 Company overview
  • 4.5 Other providers
    • 4.5.1 AST Australia
  • 4.6 FedSat – Australia’s low earth orbit satellite (historic)
• 5. Usage and revenue estimates
  • 5.1 Background information
  • 5.2 Revenue
• 6. Related reports

• Table 1 – Revenue by business area – Jan 2011
• Table 2 – Pivotel satellite data costs – June 2011

• Chart 1 – Estimate mobile satellite users – 2007 - 2011
• Chart 2 – Optus satellite revenue – 2007 - 2012

• Exhibit 1 – Pivotel Communications Pty Limited at a glance – 2011