According to Kate Lundy, the Shadow Minister for Information Technology, Telstra revealed the AU$2 billion figure at the Senate Budget Estimates today. Pair gain technology splits a standard telephone line into two different lines, in the process eliminating the possibility of using either line for DSL broadband.
However, Telstra has argued the figure is irrelevant, since the issue is not the replacement of the pair gain technology but supplying broadband -- in one form or another -- to any Australian who wants it.
"Withdrawing technology that delivers a standard telephone service is not the issue," said Telstra spokesperson Kerrina Lawrence. "The issue is responding to as many Australian as would like to access broadband. We are responding to that with having enabled more than 919 exchanges [for ADSL technology]."
Lundy blames the rollout of pair gain technology for the slow dial-up Internet connection speeds experienced by 1.2 million people, and the fact the users of these lines are prevented from getting ADSL broadband technology.
"As a result Australia now has residential and business telephone networks that are far from future proof," said Lundy. "The existing copper network will never be able to support a high proportion of broadband penetration."
Lawrence said broadband was available to all Australians for under AU$60 per month (plus start up costs) using satellite technology, and added that Telstra had pledged AU$10 million to install "work around" solutions for pair-gain affected lines, such as installing minimuxes, which allow pair gain effected lines to run DSL, and installing small amounts of extra copper pathway.
"In May we began a process where if customer contacts Telstra and they can't access ADSL we will investigate if we can provide an alternative solution or achieve a work-around," said Lawrence.
And let that be a lesson to Telstra.
Andrew