Sky provides update on status of satellite supply

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19 August 2024
Sky provides update on status of satellite supply

As announced on 24 August 2023, Sky has an agreement in place with Optus that provides Sky with
security of supply over satellite services to 2031.
The Optus agreement provides for Sky’s transition from its current D-Series satellite (Optus D2),
which reaches end-of-life in 2025, to alternative satellite options, including a new software-enabled
satellite (Optus 11) at a future date.
Having recently received updates from Optus, Sky provides the following information on the status
of its satellite supply:
• The Optus 11 satellite that was expected to be ready for service in late 2025 has experienced
further manufacturing delays, and the earliest Optus expects to offer access to this
spacecraft is during 2027. Sky considers that there is a possibility for further delay but does
not anticipate any disruption to its satellite supply as a result.
• Optus has notified Sky that, following recent fuel assessments, the end of the commercial
operation of the Optus D2 satellite has been brought forward to May 2025. Optus has
offered Sky two satellite path options to replace Optus D2 and Sky will now accelerate its
migration plans to meet this new deadline.
Sky has previously undertaken successful satellite migrations, and while significant reprioritised
effort will be required in FY25, Sky is confident it can achieve migration to an alternative satellite by
May 2025. There remains an inherent technology and logistical risk to the successful migration to an
alternative satellite, with on-the-ground technology updates also required. Sky will seek to ensure a
smooth transition for customers, including by undertaking significant testing and customer
communications ahead of any migration steps. Sky’s focus throughout the satellite migration
planning has been to ensure the most effective transition strategy that will deliver the best customer
experience.
Sky will continue to accelerate its rollout of the new, internet-connected Sky Box and the IP-only Sky
Pod which, alongside access to companion app Sky Go for all Sky Box customers, will also serve to
derisk any potential disruption.
The acceleration of the migration programme will mean some rephasing of costs from FY26 into
FY25. Sky is working through the accelerated migration options and planning with Optus, noting the
existing commitment from Optus to provide financial support for Sky to undertake the necessary
investment required to ensure a seamless transition across the replacement satellite options.
Sky continues to receive assurance of security of supply from Optus through to 2031 and is focused
on ensuring a successful migration with minimal customer impact.

ENDS
Authorised by Kirstin Jones, Company Secretary

Investor queries to: Media queries to:
Amanda West Chris Major
Investor Relations Chief Corporate Affairs Officer
amanda.west@sky.co.nz chris.major@sky.co.nz