Optus, a subsidiary of Singapore Telecommunications (SingTel), jointly funded the 500 million dollar (325 million US) C1 hybrid communications/military satellite with the Australian Defence Force (ADF).

Half the satellite's payload will be for military use and half for pay television broadcasts, high-speed Internet services and voice and data communications across Australia and parts of Asia.

Defence Minister Robert Hill said the two payloads would operate independently to ensure there was no mix-up of data between its defence and commercial applications.

SingTel completed its Optus takeover in October 2001 after gaining the Australian government's approval despite concerns the Singaporean government-controlled company would be able to access information relayed by the satellite.

Government ministers said at the time they were satisfied with SingTel's undertakings to safeguard the security of sensitive commercial and military communications traffic.

Australia's Department of Defence, making its first foray into satellite ownership, said Thursday it would use its half of C1 to transfer voice, data and video information to mobile and deployed forces.

The need for military access to such high-speed satellite links was highlighted during Australia's recent role in the coalition which toppled the regime of Iraqi leader Saddam Hussein, Hill said.

"The ADF needed enough bandwidth to pass quick, accurate high-density data in and out of the Gulf around the clock to strategic, operational and tactical commanders," Hill said.

"These same requirements apply in our immediate neighbourhood where the C1 satellite will provide increased communications capacity for the ADF," he said.

Optus chief operating officer Paul O'Sullivan said the company would get 250 million dollars in launch revenue and an extra 40 million dollars per year from the sale of capacity to subscription television provider Foxtel.

"The demand for satellite communications services is growing strongly -- for direct-to-home subscription television, for remote and rural communications, and for broadband," O'Sullivan said.

The C1 has a planned operating life of 15 years, with 24 commercial transponders providing coverage for Australia, New Zealand and East Asia.

Eight additional transponders and six UHF channels will serve for defense communications.

O'Sullivan said Optus was already in the market for a fifth satellite, with two of its fleet set to expire over the next five years.

"We put out a request for an expression of interest for the next long-range satellite," he said.

The European Space Agency's Ariane-5, launching from the Kourou space base in French Guiana, also put a satellite into orbit for Japan's Broadcasting Satellite System corporation.

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