Australia To Pay $800 Million To Use New Pentagon Satellites

Team Infidel

Forum Spin Doctor
Wall Street Journal
October 4, 2007
Pg. B7
By Andy Pasztor
Pentagon brass and Australia's military leaders have signed off on an agreement under which Australia is committing more than $800 million for a guaranteed share of the capacity of an expanded U.S. military satellite-communications system being built by Boeing Co.
The pact, which had been expected, means that the proposed $1.8 billion project called Wideband Global Satcom will be expanded to at least six high-earth-orbit satellites, versus the five-satellite constellation previously under contract. The move also boosts efforts by the U.S. Defense Department to foster international cooperation on some of its big-ticket space programs and to get foreign governments to underwrite part of their price tag.
The Global Satcom project -- originally conceived as a stopgap solution until the U.S. military could field a more-advanced and capable network -- is designed to offer at least 10 times greater bandwidth than any existing space system to send data and video to forces around the globe. Australia's financial commitment includes the cost of launch, ground support equipment, upkeep and other continuing expenses.
Australian Defence Minister Brendan Nelson said the partnership agreement will ensure Australia's military will be able to operate anywhere in the world, while enhancing joint capabilities with U.S. forces.
The agreement follows by several weeks a visit by President Bush to meet with Australian Prime Minister John Howard. The two leaders signed a broad defense-trade agreement to make it easier to share military information and hardware between the two countries.
The space communications project is two years behind schedule, but the first satellite is slated to be launched as early as next week. The full constellation isn't slated to become operational before 2013.
By agreeing to expand the program, the Pentagon is partly following directions from Congress to focus on building more current-generation satellites before starting full-bore development of next-generation communication satellite networks.
U.S. industry officials have speculated that similar pacts with other U.S. allies could further expand the planned Global Satcom fleet to a total of seven satellites, though Pentagon officials have declined to comment on that issue. But as part of preliminary budget projections through the middle of the next decade, the Pentagon is mulling building as many as nine of Boeing's Global Satcom satellites, according to a person familiar with the numbers.
 
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