Experts guided NBN satellite, PM says

The federal government took expert advice before deciding to buy rather than lease a pair of satellites to deliver broadband services to remote outback areas, Prime Minister Julia Gillard says.

Ms Gillard said Australia couldn’t have a prosperous economy using yesterday’s tools.

Asked why the government had not gone for the cheaper option of leasing space on a commercial satellite, she told ABC Television the government had asked all the questions.

“And we have had every level of due diligence and reports and experts and advice,” Ms Gillard said.

“But it all comes down to this very simple proposition – do we think that we can have a prosperous economy in the future using yesterday’s tools.”

This week the government announced a $620 million deal between NBN Co, the government-owned enterprise rolling out the national broadband network, and US company Loral Space and Communications for the two satellites.

When the satellites go into orbit in 2015, about 200,000 homes and businesses in the remotest regions will have access to internet download speeds similar to those currently available in urban centres.

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