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| The Information |
| Telstra backs away from ADSL2+: |
12-11-2005 |
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TELSTRA has stepped back from its commitment to complete long-awaited upgrades to its ADSL network by mid-2006.
Earlier this year, Telstra announced that it would update 200 of it exchanges to carry high-speed ADSL2+ services by mid-2005 and complete the upgrade project by mid-next year.
But Telstra spokesman Rod Bruem said the plan would be reconsidered as part of a wide-ranging review of the carrier's operations expected to be revealed before the end of the month.
"I probably couldn't confirm that date at this stage. It's one of the products that are involved in the all-encompassing review and we should have clearer picture when the company releases its strategic plan in the next few weeks," Mr Bruem said.
Telstra decided to conduct the review after the federal Government announced that it would impose tighter pricing regulations on the carrier, to protect rural services.
Yesterday, deputy managing director of Telstra's public policy group, Kate McKenzie told a Senate estimates hearing that the ADSL2+ roll-out had not been put on hold but said that the carrier was reconsidering all of its infrastructure investments.
Denis Mullane, general manager of Telstra integrated network planning, said that the roll-out was continuing "each and every week".
ADSL2+ internet services are up to 10 times faster than the maximum Telstra will currently allow on it ADSL1 network.
Telstra ADSL resellers that Australian IT spoke to said they were becoming nervous over Telstra's lack of clarity over its plans for ADSL2 and 2+.
Michael Malone managing director of Perth ISP iiNet said he was concerned that Telstra would release its high-speed service to its retail customers but withhold it from its wholesale channel.
Labor shadow IT spokesman Senator Stephen Conroy made several attempts to force Telstra make clear its position on the matter during yesterday's estimates hearing.
Mr Mullane refused to answer the Senator's questions ahead of the strategic review.
At the same hearing, ICT Minister Helen Coonan said the Government was yet to decide if it would require Telstra to make the high-speed DSL service available to its wholesale customers under its operational separation plan.
Simon Hackett managing director of South Australian ISP Internode said he feared that Telstra was using its ADSL2+ investment to broker a deal with Government that would see wholesale customers frozen out of the service.
"What we've got in conversations with our wholesale representatives recently is that all decisions are off until the current review within Telstra is complete," Mr Hackett said.
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