Two satellites costing $620 million - designed to deliver high-speed internet services to 3per cent of the population - will have an intended lifespan of 15 years.
The United States company commissioned to build the two satellites, which will be operational by 2015, said the technology was ''designed to provide service for 15 years or more''.
The satellites will boost the NBN's reach to the most remote parts of Australia and its territories, providing fast internet services to up to 400,000 households.
This means isolated parts of the Northern Territory, Western Australia, the Cocos Islands, Macquarie Island, Christmas Island and Norfolk Island will have access to internet speeds similar to that enjoyed by city customers today for $41.3million a year.
Prime Minister Julia Gillard and Communications Minister Stephen Conroy yesterday announced the US company Space Systems-Loral had won the contract to supply the satellite technology.
NBN Co, the government-owned enterprise delivering the NBN, says 93per cent of households will be linked to the national network through broadband technology.
In more remote areas fixed wireless services will provide internet coverage to 4per cent of Australian households, and satellites will offer coverage to the most remote 3per cent of Australian households.
The government has committed to roll out its $35.9billion project to 13million Australian homes, schools and businesses by 2021.
Prime Minister Julia Gillard said the agreement would give people equal access to the national scheme.
''We won't be leaving those Australians who live in the remotest parts of Australia behind,'' she said.
Mr Conroy said: ''It ensures remote families and business pay the same entry-level wholesale price for services in the city.''
''Using these satellites, rural businesses can make it easier to expand in national and international markets.''
But opposition communications spokesman Malcolm Turnbull said taxpayers were entitled to question the cost and effectiveness of the scheme.
''The NBN's announcement today is typical of an approach to this project which pays no regard to financial circumstance, which pays no regard to money,'' Mr Turnbull said in Canberra.
''It's very much as though you've got a bunch of engineers, and given them an unlimited chequebook, and said, 'knock yourselves out, spend as much as you can. Don't ever buy a Camry, or a Falcon, just always get a Rolls-Royce or a Bentley; nothing but the best will do. Nothing but the most expensive will do'.''
Mr Turnbull said the apparently cheaper option of buying into existing satellite capacity should been taken up, claiming there was more than enough spare capacity in satellites circumnavigating the earth, or those soon to be launched. ''Why buy and build vastly more capacity than you need when there is surplus capacity elsewhere?''
This reporter is on Twitter: @_biancah
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