IPSTAR joins NBN interim satellite talks

Australian satellite operator IPSTAR is likely to become one of several sub-contractors to Optus under a deal to provide interim satellite services under the National Broadband Network (NBN).

reported this week that to become prime contractor of third-party satellites for provision of the interim services.

Neither Optus or NBN Co would comment on the speculation, though an NBN Co spokesperson confirmed negotiations were at advanced stages and the results would be announced "soon".

The would replace the $325 million Australian Broadband Guarantee (ABG) instituted by the federal government in 2007 to subsidise satellite or other wireless internet services to Australian premises unable to receive a minimum standard.

The services would effectively become a placeholder while NBN Co progresses with plans to , a $1 billion project that would ultimately serve three per cent of the Australian population - or approximately 600,000 premises - under the NBN.

While Optus operates a number of local satellites under the ABG, and last year speeds, it is believed the wholesaler is attempting to reach services closer to the 12Mbps speeds it would have to deliver under the final services form 2015 onwards.