NBN Co defends satellite share as Amazon Leo trials near

NBN Co has moved aggressively to retain share of the broadband satellite market as it moves to start to offering services on Amazon’s faster low Earth orbit (LEO) constellation.

The national network builder is proposing to offer Amazon’s LEOsat services at wholesale prices roughly the same or lower than those it currently sets for equivalent speed tiers under its outgoing Sky Muster and Sky Muster Plus pricing models.

It has also committed to retain that pricing for the first two years after the service launches but pegged to inflation.

The catch is that, under its proposal, it will only offer the pricing to customers who place an order for the new Amazon service within 90 days of launch.

NBN Co has revealed the pricing arrangements in a statement accompanying its release of two new discussion papers to open consultations with industry ahead of proof-of-concept trials slated for July as it moves toward a 2030 retirement date for its Sky Muster Satellites.

“NBN Co is proposing to price its introductory NBN Leo plans for existing NBN satellite customers who upgrade early to be less than or equal to the FY26 wholesale price of Sky Muster Plus satellite services,” it wrote in its statement.

NBN Co is proposing to fold its 12/1Mbps and 25/5Mbps Sky Muster and Sky Muster Plus broadband satellite service tiers into a single Amazon Leo 50/10 Mbps offering.

Current customers who switch within 90 days will be able to purchase it through retailers based on a wholesale price of $35.84 per month for the first two financial years after launch.

It will offer its current Sky Muster Plus 50/10Mbps customers an equivalent speed tier on its Amazon LEO service at a wholesale price of $46.08 on the same terms.

Similarly, those on its 100/5 Mbps Sky Muster Plus customers will be offered the opportunity to move to a faster LEO-based 100/20Mbps.

Initially at least, the company is also proposing to replace existing customers’ Sky Muster receiving equipment at no cost, NBN Co chief development officer, regional & remote Gavin Williams said.

“We aim to deliver on our customers’ high expectations for speed and reliability, backed by $0 equipment and the same, friendly, professional installation and service that sets us apart," he said.

“We want all eligible customers, delivery partners and regional communities to be ready for a smooth transition to the new NBN LEO broadband service, powered by Amazon Leo, as soon as the constellation is switched on across Australia.”

NBN Co expects the incoming Amazon LEO service to cover a footprint of roughly 300,000 users and said it remained on track for testing and trials in Tasmania to take place between July and September this year.

It also said that it was now hoping to complete customer migrations to the new service during the fourth calendar quarter of 2027 with decommissioning of its current geostationary craft to start a year later.

It committed to keep operating the Sky Muster satellites until at least 2028.

“NBN Co is working in close collaboration with Amazon Leo on product development and is on track to begin testing and trials in the second half of 2026," the company said.

"The progressive roll out of NBN Co LEO will be dependent upon Amazon Leo’s global deployment and launch plans.

“For now, there are no changes to the NBN Sky Muster and Sky Muster Plus service and the company’s two Sky Muster satellites that are projected to reach end of life in the early 2030s.

"NBN Co will continue to operate and maintain these assets until at least the end of 2028."