"In part that's been because of the tricky mixed performance of satellite delivery in Australia," he said.

In particular, NBN Co would need to assume the responsibility to subsidise installation and subsequent access to satellite services by rural communities in the interim period, an aspect currently handled by the federal government until the ABG is discontinued at the end of June. The current scheme provides subsidies worth between $2500 and $6000 per customer.

"One of the problems with the ABG was some providers took it as a way of subsidising the installation and pocketed the money so to speak, and didn't provide particularly good broadband services," Coutts said.

"The aim is to subsidise the installation but also subsidises the bandwidth.

"If they can get that down, that will promote usage and demand."