The terminal and gateway incorporate the proprietary modulation and coding technologies, and transmission architecture optimized for the IPSTAR satellite system. The interface for the terminal and gateway to any device or network will be based on the industry standard Internet Protocol, to ensure a seamless integration to the existing system, software, hardware, applications, services and networks. iPSTAR Australia plans to deploy the Ground System in 2 phases:

• The First Generation (Pre-broadband Satellite) IPSTAR is emphasizing the early development of the user terminal to ensure system integration and competitive prices by the time new IPSTAR satellite becomes operational. The first generation user terminal is available and applicable to the Thaicom Fleet and other conventional satellites.
  
  The first generation (FG) terminal utilizes available Ku-band bandwidth from the existing satellite Fleet and, will be compatible to IPSTAR. The soft launch is designed, planned and implemented to help ramp up the service infrastructure and volume production for the launch of the IPSTAR system and to achieve time-to-market requirement and first-mover advantages. It will serve mainly Internet access, telephony and broadcast services with Forward Link bandwidth per Terminal of up to 5 Mbps.
  
  The prototype of the FG-IDU (In-door Unit) was completed by the fourth quarter of 2000 and the start of the commercial roll out was on the fourth quarter of 2001. iPSTAR expects to reach economies of scale during the soft launch phase, which will make the unit cost even more compelling by the time the Satellite is launched.
  
  
• The Second Generations (Post-broadband Satellite) After the launch of the IPSTAR-1 Satellite, all connections and systems using IPSTAR FG soft launch services will be migrated to the Satellite. This will mark the official commencement of the SG IPSTAR System services. iPSTAR Australia expects the larger volume productions and more advanced chip integration to bring down the cost due to economies of scale.
  

The IPSTAR network configuration is based on Gateway STAR topology. A user terminal will receive and transmit signals from/to a Beam, which connects with a gateway. The gateway in turn connects to other networks such as the Internet backbone, telephone network, corporate headquarters and other IPSTAR Gateways.

IPSTAR's Modulation and Coding technology provides an efficient use of RF power and bandwidth, allowing a high and flexible digital transmission rate which allows the use of small antennas and transmitters.