Optus says the decision to launch D1 was not the result of the problems with D1. A spokewoman said: "the decision was based on forecast demand and a strong business case."

Optus' parent, SingTel, announced the same day that Optus, through Optus Finance Pty Ltd, had signed a $700 million two year loan facility with seven major international and domestic banks. SingTel did not specify how the funds would be applied saying only that "The facility will be used for general working capital purposes."

Optus CEO Paul O'Sullivan said that Foxtel, one of the largest TV broadcast customers, had already signed up to take capacity on the new satellite. Kim Williams, CEO of Foxtel, said: "this deal with Optus will provide the platform for subscription television services in Australia for the next decade and beyond. Optus' D3 satellite provides capacity for Foxtel to deliver new services to our customers on our direct-to-home satellite platform including high definition content."

Paul Sheridan, Head of Optus Satellite, said "Optus is positioned to provide additional services to all our satellite customers; growth opportunities to the ethnic services broadcast sector; and additional in-orbit redundancy for customers out to the year 2020 and beyond."

The satellite will be built by Orbital Sciences Corporation of the USA, the manufacturer of the Optus D1 and D2 satellites. Arianespace launched the D1 satellite from French Guiana in October 2006 and is scheduled to launch D2 in late 2007. It will replace the B3 satellite which is nearing the end of its life.

The new loan facility varies Optus' $300 million 364 day loan facility which was arranged in May 2005 and extended in 2006. Banks who participated in the facility were ABN Amro, Australia and New Zealand Banking Group, BNP Paribas, Barclays Bank PLC, Citibank NA, Commonwealth Bank and Westpac.