ISPs still buying ADSL kit

Australian internet service providers are increasing their purchases of ADSL equipment, according to Ericsson, despite the potential for the construction of the National Broadband Network to make such investments irrelevant in the long term.

DSLAM

The Croydon (Vic) exchange area
(Credit: Telstra)

"Despite the global financial crisis in 2009, our ISP customers found it necessary to keep up with demand," said Ericsson Australia's broadband strategy manager Colin Goodwin in a statement. "Overall, ISPs actually spent around 10 per cent more on access equipment in 2009 than in 2008."

Ericsson counts iiNet, Internode, TransACT, Primus, TSN, Netspace and Adam Internet among its Australian ISP customers.

The construction of the NBN has the potential to undercut the investments in the long term, as it will see optical fibre cables laid down on the streets of the customers' premises; the current ADSL (Asymmetric Digital Subscriber Line) infrastructure is based on copper cables.

But Goodwin said ISPs saw a strong business case for continued investments in ADSL. "In the drive for customer acquisition, there is ample time to earn a return on today's DSL networks," he said.

Some ISPs, the Ericsson executive added, were also investing in edge routing equipment which would support their own DSL networks, as well as connections to wholesale fibre to the premises networks — such as the NBN. iiNet, Optus, M2 Telecommunications and TransACT, for example, have all deployed Ericsson's SmartEdge router.

Communications Minister Senator Conroy has previously advised ISPs to continue to invest in ADSL infrastructure, despite the formation of NBN Co's mission to lay fibre to the home for 90 per cent of Australians.

He pointed out that the roll-out was happening over an eight-year time frame and that prices for the equipment had reduced while depreciation time frames were getting faster.

Talkback

At the rates we're paying, I can see why!

'But Goodwin said ISPs saw a strong business case for continued investments in ADSL. "In the drive for customer acquisition, there is ample time to earn a return on today's DSL networks," he said.'

Whilstever we keep paying 10,000% in comparison to the rest of the world, of course there's a healthy profit margin.

MicMic February 9th, 2010
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NBN gives me nothing...well maybe worse health care

Why would I want 100Mb and Fibre to my home anyways? The Cost Benefit analysis for me would be very high on cost and very low on benefit. I get 16Mb/s at the moment, more then enough for my needs (which are more than just E-mail)
BTW, Where can I read the Governments Cost Benefit analysis?

Go to www.speedtest.net and see what the speeds are when you leave Australia. Pick some locations in the USA and Europe and see your speed drop away.

The NBN will not increase the intercontinental links so when I go to get content (most of which is outside Australia) I will get no better service from 100Mb/s NBN fibre than I get now from ADSL2+.

I will pay a lot more...more and more and more until the $51 billion is spend. Yes, remember every Government project is under costed. Look at the Laptops for children or any other.

AnonymousAnonymous February 9th, 2010
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