
At Telecom’s quarterly result briefing this morning, chief executive Paul Reynolds announced a further series of exchanges are being upgraded to VDSL2.
And, by the by, Dr Reynolds said he’s trialling this super-fast of copper connection - and clocking download speeds in the region of 40Mbit/s to 42Mbit/s.
To put that in context, the fastest DSL connections today, based on ADSL2+ technology, clock around 16Mbit/s. Many get half that.
When I tweeted the good doctor’s speed claims, PC World’s Ted Gibbons was quick to point out that it’s “nice to have a network all to yourself”.
True.
But Dr Reynolds went on to say that VDSL2 could be tweaked to hit 100Mbit/s.
He could have said 150Mbit/s or faster, quoting trials overseas, but 100Mbit/s had a more poetic ring about it - being the speed that Communications Minister Steven Joyce habitually quotes for fibre optic cable.
Fibre still trumps copper-based VDSL2 on most levels.
While VDSL2 requires you to live within 2km - or, for the full effect, 1km - of your local exchange or cabinet.
Fibre bandwidth, on the other hand, doesn’t degrade with distance. And, unlike VDSL2, you get full whack speed for uploads too.
Dr Reynolds was careful to say that he saw VDSL2 as a complement to fibre to the node, and that he is a fully paid up fan of fibre (if still struggling to see how the government's mooted subsidised regional model, and its muddy rate of return, can be balanced with shareholder interests).
But nevertheless, VDSL2 would be extremely welcome in many households that face a six to 10 year wait for crown-subsidised fibre-to-the-home.
Unfortutunately, there's no current timetable to roll-out VDSL2.
There are no technical hold-ups, but Telecom Wholesale is locking horns with the Commerce Commission over whether it can charge an extra $20 a month for this premium service (Orcon, Vodafone and other interpret regulations as saying DSL is DSL, and there can only be one price. Both also want better terms to put their own ADSL2+ or VDSL2 gear into Telecom's roadside cabinets.)
Comments
You'd think it would be ok
You'd think it would be ok to charge extra - if it cost extra to impliment.
@ Kai
I don't think that's the issue here. It is costing Telecom $1.4Billion over 4 & a bit years to roll out FTTN & ADSL2+ does not cost anymore as a result.
No matter what ISP you are with - you will benefit from these upgrades - they aim to obtain 10-20Mbit for 80% of the country.
The DLAMS in those cabinets support VDSL2 RIGHT NOW - so why should it cost "more" to receive a VDSL2 product, when the infrastructure is already being rolled out as part of Telecom's Cabinetisation Program??
VDSL might be already further deployed than you think
I was told more than a year ago by a person deeply involved with the
Telecom cabinet rollout something that might be of interest here: The difference in cost for VDSL capable line cards to those only supporting ADSL2+ was so small that they plan to use the former for the rollout. I assume therefore that there are only a smaller number of early deployed cabinets that are really limited to ADSL2+. It is obviously much better to deploy VDSL capable line cards from the outset (and limit them initially to ADSL2+ speed) instead of replacing them only a relatively short time later.
For Wholesale to now ask for a rather steep premium where the cost differential has been small, seems pretty cheeky to me. But as always, they'd be foolish not to try out if they could get away with it. And I guess it's totally in line with what we have come to expect from them.
In this whole saga about Telecom's cabinet rollout (costing ca. $1.4 B) let's not forget that that they have not done it because they now want to be a better corporate citizen. Or that have have come to see the errors in their way (grossly under investing and reaping quasi-monopoly profits). It is an absolute necessity due to the deteriorating state of their PSTN network. These NEAX switches are really at the very end of their commercial life (e.g. no spare parts, no further enhancements, ...). Plus the limits of the then current ADSL network required to undertake the cabinet rollout. Therefore for many technical reasons this rollout is an absolute necessity. The whole regulatory change of the last few years might have brought the rollout a bit forward and sped things up, but my point is that there was no real alternative.
So as much as I acknowledge that they by and large are now doing the right thing they have a lot of goodwill to make up for.
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