A deal has been signed in Melbourne that finds indie satservices provider NewSat Limited [ASX: NWT] and consumer telco Dodo working together to bring affordable broadband Internet connectivity to remote Australian households and businesses. This will occur under the Howard Government’s Australian Broadband Guarantee program. This service is set to start on October 7th and will offer seven connection plans, all capped, which will slice around 30 percent from the current starting process for a 256/64kbps speed connection.
The service will form the basis of an application to the Commonwealth Government’s ABG program this month and is subject to approval by the Australian Government’s Department of Communications, Information Technology and the Arts. Dodo is committed to deliver a minimum target of 12,000 remote customers under ABG budgeted funding to June 30, 2008. Estimates are the contract will be worth $30 million in revenue over the first nine months, to the end of the financial year in July of 2008, of the five-year contract life. For more information regarding the Australian Broadband Guarantee, we recommend you head over to https://www.multiemedia.com/index.php?option=content&task=view&id=17&Itemid=49 and read all about the plan.
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