The first of two new satellites being launched into space on October 1 as part of the National Broadband Network (NBN) will deliver "plenty of bandwidth" to customers in rural and remote parts of the country, according to Federal Communications Minister Malcolm Turnbull.

He was responding to scepticism from outback Queensland residents who currently access the internet via the congested Interim Satellite Service (ISS), which struggles to support video conferencing technology used for health check-ups and distance education.

Speaking to ABC's 7.30 on Monday night, Mr Turnbull acknowledged the ISS did not offer isolated communities like Birdsville "the greatest connectivity" but assured his critics that would change once the Sky Muster satellite was blasted 36,000 kilometres into orbit.

Sky Muster satellite One of the world's largest communications satellites

One of the world's largest communications satellites Weighs nearly 6,400 kilograms and is the size of an African elephant

Weighs nearly 6,400 kilograms and is the size of an African elephant Will be blasted 36,000 kilometres into orbit

Will be blasted 36,000 kilometres into orbit Will progressively deliver fast broadband to more than 200,000 homes

Will progressively deliver fast broadband to more than 200,000 homes Named by 6yo NT student Bailey Brooks, "Sky Muster" refers to the gathering of cattle and how the satellite will "round up" Australians

"It will deliver a 25-megabit per second download, 5-megabit per second upload service," he said.

"That is perfectly capable of delivering voice applications and video conferencing applications."

At the Birdsville clinic, video conferencing is so unreliable that Shelly Dillon, 53, was forced to fly to Toowoomba, west of Brisbane, to see medical specialists every six weeks.

The mother of five, who is still recovering from a horrific quad bike accident at the iconic Big Red sand dune two years ago, said some of the consultations lasted just five to ten minutes.

"It could be done at our own clinics if the internet was fast enough and we had the facilities to do a video conference with [the specialists]," she told 7.30.

"We have the X-ray machines and everything but [the specialists] can't see them so I have to fly away at enormous cost to everybody, really."

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 8 minutes 53 seconds 8 m Communications Minister Malcolm Turnbull talks to Leigh Sales.

According to the acting director of nursing at the clinic, Jill Macdonald, the video conferencing technology has been plagued by glitches and delays.

"Every time I've used it we've had problems with it," she said.

"You can get someone at the other end but when you're looking at them on screen, they freeze."

The limitations also extend to X-ray machines, with staff unable to send the images to radiographers for assessment.

When 7.30 visited the clinic, Ben Leech, 27, arrived with a suspected broken finger but was told he would have to drive eight hours to Mount Isa to get an X-ray.

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"At the moment we don't have that capability because of the internet," Ms Macdonald informed him.

Families waking at night to avoid internet congestion

More than 40,000 Australians access the internet via the ISS, which Mr Turnbull has declared a "failure".

There is a limited amount of data available but that has not stopped some customers from using more than their fare share.

Internet service providers (ISPs) have been forced to intervene, implementing "shaping" — an approach that limits their users' broadband connection speed when they exceed their quota.

Lorraine Kath's son is struggling to do his homework due to slow Internet. ( ABC: David Lewis )

There is also a "peak period" from 8:00am to midnight in which the ISS becomes so congested basic web browsing is impossible.

"I definitely wouldn't dream about downloading a movie, that's just totally out of the question," Lorraine Kath at Mount Leonard cattle station in Betoota, two hours east of Birdsville, said.

"I've heard stories of people getting up in the middle of the night to get their jobs done on the internet."

Ms Kath's son Jacob is a student of the School of the Air, which has become increasingly focused on video conferencing technology he is unable to use.

He receives support from governess Britnee Sauer but the slow internet makes planning lessons difficult.

"It does make it really hard when you have to watch videos in preparation for a lesson," Ms Sauer said.

"It's also quite frustrating if you've got to send in sheets and things like that.

"You can't always send them because they're too big. It just makes it difficult to get students' assessments in on time."

'Right, we'll shake on it': Abbott

For years, Diamantina Shire Mayor Geoff Morton has been lobbying for better telecommunications in the region and until recently he thought he had succeeded.

When the Prime Minister visited Longreach in May, Mr Morton and Barcoo Shire Mayor Julie Groves cornered him in a shed to pitch a solution to the problem.

Prime Minister (third from left) visited Longreach in May and promised better telecommunications in the region. ( Supplied )

They asked Tony Abbott to commit $7 million to the installation of fibre optic cabling from Boulia to Bedourie to Birdsville and from Stonehenge to Jundah to Windorah.

The Queensland Government would contribute the same amount and the Diamantina and Barcoo councils would throw in the rest.

Mr Morton recalled an enthusiastic response from Mr Abbott, who shook hands on the deal.

"He said, 'Right, we'll shake on it', which we did. He called his advisors and [Warren Truss] over and told them what the deal was," she said.

"We had the photos and as far as everyone was concerned the deal was done."

Just weeks after pledging the money, however, Mr Abbott wrote to both councils informing them the agreement was off.

"Since our conversation at Longreach in May, I have been advised that the NBN is scheduled to commence its high-speed satellite service in the second quarter of 2016," the Prime Minister's letter read.

"On this basis, I suggest that it might be best to reassess the need for this in about 12 months' time."

Prime Minister's 'broken promise'

The news came as a shock to the councils, which had already been issued with a bill from Telstra for over $4 million for a feasibility study.

The study found the fibre optic cabling could be installed by July next year.

Now the project has been shelved, the councils have been encouraged to apply for a reduced amount of funding for the project through the federal government's Stronger Regions program.

While their application is considered, Councillor Morton is careful not to label Mr Abbott's backing away from the fibre optic deal a "broken promise".

"On the surface it does look like a broken promise, because one would have thought a man's handshake is as good as his word," he said.

Councillor Morton maintained the new Sky Muster satellite would not fix his shire's telecommunications woes but rather "cement western Queensland back in the 20th century, probably forever".

Mr Turnbull told 7.30 he respectfully disagreed.

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