Gilat Satellite Networks has been selected by Optus Networks Pty Limited to provide a SkyEdge II Very Small Aperture Terminal (VSAT) network, installation, operation and maintenance for the Australian Government's National Broadband Network Company's (NBN Co) Interim Satellite Service.

NBN Co has a commitment to offer connectivity to regional and rural locations via satellite technology where geographic location impedes the ability to provide either fiber or advanced wireless connectivity.

The Interim Satellite Service is a first stage solution, planned to provide up to 6Mbps download and 1Mbps upload broadband services to eligible Australian households, small business and indigenous communities.

The agreement with Optus provides for an initial network of 11 SkyEdge II hubs and 20,000 SkyEdge II VSATs expected to be deployed within up to three years. The agreement stipulates a possible expansion of the network to include hubs and up to 48,000 VSATs.

Gilat's new Australian subsidiary, Gilat Satellite Networks Australia Pty Ltd., will undertake responsibility for end-to-end VSAT installation, as well as hub maintenance and operation in three geographical locations, for a period of five years.

The agreement represents a potential value of up to $120 million, subject to final design and implementation of the fully expanded network.

The hubs are planned to be commissioned and VSAT service to commence operation in 2011. The satellite network will utilize Optus' existing Ku capacity and IPSTAR's multi-spotbeam capacity available over Australia.

Ms Vicki Brady, Managing Director, Optus Wholesale and Satellite said, "We are pleased to be working with Gilat on this Optus led initiative to provide critical infrastructure for NBN Co's Interim Satellite Service.

"Gilat have a proven track-record within the Australian marketplace in delivering the VSAT services platform and will work with Optus to provide the installation, maintenance and hub operations of the Interim Satellite Service."

Amiram Levinberg, CEO and Chairman of the Board, Gilat said, "The Australian government has set a goal to provide next-generation network coverage to all of Australia, and satellite is a natural fit for complementing fiber and wireless technologies to achieve this. This large scale VSAT network will utilize Optus' satellite capacity as well as IPSTAR's multi spot beam satellite. We are proud to provide our technology as well as our experience in rolling out and operating large scale satellite networks."