Satellite to stay private

The Government will be just another customer of the country's first satellite because the majority of its ownership is likely to stay in private hands.

Local company NZLSAT won approval last week from the Ministry of Economic Development to go ahead with its plan to launch a telecommunications satellite in January 2010.

The Government has granted the company the rights to use New Zealand's unused orbital slot, as assigned by the International Telecommunications Union governing body, which means NZLSAT will control the country's only satellite.

In some countries, Governments have taken controlling stakes of their satellites.

Thailand is a majority stakeholder in iPSTAR, which several New Zealand companies use to provide broadband internet services here.

Brian Miller, the head of the ministry's radio spectrum planning department, said this was because such countries - particularly in Asia - generally had much tighter regulatory control over their telecommunications sectors.

Aside from some of the early stage funding for feasibility studies, the Government's plan is to keep its hands off the satellite.

"Typically, the industry is better at organising these things and making business decisions than the Government at trying to pick the best way forward," he said.

"That would be true, relatively speaking, about the telecommunications-type initiatives as well. So it probably is more philosophical in that sense."

Miller said that, as part of the approval to NZLSAT, the Government had first right of refusal to two transponders on the satellite. While broadcast and communications companies would be NZLSAT's primary customers, the satellite would have potential military uses, which meant the Government might be interested in negotiating a commercial deal.

The principals behind the company are communications lawyer Paul Hannah-Jones, former ministry spectrum manager Katharine Moody and radio sector consultant Alan Jamieson. The trio formed NZLSAT 18 months ago and initiated a study into the feasibility of a satellite.

Hannah-Jones said they were gratified by the study and found a business case could be made.

The company has been in discussions with potential users and is looking to firm up agreements, then proceed to design and construction. NZLSAT expects the satellite will cost up to $240 million.

Hannah-Jones said NZLSAT's advantage over neighbouring satellites was that it would allow customers to have a say in its design and it would also offer dedicated local capacity.

"It's optimised for New Zealand use."