Dodo to be powered by NewSat

Local independent satellite service provider NewSat Limited will be powering consumer telco Dodo’s broadband services.

The deal will allow for connection of broadband internet to remote Australian households and businesses under the Howard Government’s Australian Broadband Guarantee programme.

According to Adrian Ballintine, CEO of NewSat Limited, the contract between the two service providers will be worth around $30 million of revenue over the first nine months - to the end of the financial year 07/08 - of the five year life of the contract.

Both parties are expecting strong continuing uptake of their best price/best performance, remote broadband connectivity by satellite offer and look forward to the Commonwealth Government’s review of the expenditure from the $400 million funding sourced out of the interest from the Telecommunication Fund for the years beyond 2008.

“In a further show of confidence in the outcomes of the agreement, Dodo Satellite Pty Ltd has also joined the NewSat share registry as a major stock-holder by subscribing to $500,000 of ordinary shares in NewSat Limited, as well as performance based options,” he said.

The agreement is a major step forward for the strategic development of NewSat and the new service is scheduled to commence in October 2007, said Ballintine.

“The deal with Dodo is a milestone in the growth of the company and opens the door to working with one of Australia’s fastest growing telecommunications retailers. We have the justification for the investment in the “Ku Plus” technology,” he said.

Dodo’s managing director and founder, Larry Kestelman said Dodo Satellite powered by NewSat will offer a range of seven connection plans, all capped, with a starting price of around $20 per month.

“As part of the new “Dodo Satellite powered by NewSat” alliance Dodo is committed to delivering a minimum target of 12,000 remote customers under ABG budgeted funding to the 30th June, 2008. This exclusive agreement is a landmark endorsement of the “Broadband to the Bush” push,” he said.

Satellite rounds out Dodo's telecommunication product offering with land lines and mobile services said Kestelman.