One of Australia's longest-running PC peripherals manufacturers is branching out as a service provider.
Modem manufacturer NetComm has announced it will become a telecommunications carrier by taking advantage of the forced unbundling of the local loop (Telstra's copper connection between the exchange and the consumer).
The service will be Digital Subscriber Line (DSL), capable of providing a wide range of simultaneous voice, data and multimedia streams.
NetComm plans to use Alcatel to install and maintain equipment in the exchange while it will provide and install the equipment at the user's end.
According to NetComm MD, David Stewart, this will range from a standard DSL modem up to a high-speed DSL modem combined with a high-speed wireless networking base.
Stewart said his company will initially aim at business users, moving to residential customers as the roll-out continues.
"We aren't looking at providing the service everywhere, but you can imagine there'll be a bit of competition to provide these services in the major business areas such as Sydney, Melbourne and North Sydney." He added that he expects to eventually see some cross-selling between new carriers, allowing access to each other's equipment in the exchanges.
NetComm plans to offer the first services at the end of the year, and has its eyes set on about five percent of the market, leveraging its existing high brand recognition. It is already in negotiations with content providers for the provision of video-on-demand and high-speed Internet services and expects to offer subscribers a DSL replacement for their existing telephone service.
"DSL is a modem technology and the extensive reach of DSL makes it a very attractive solution. Essentially, DSL technology can be deployed in every place where copper lines currently exist. We, at NetComm, believe it will be the broadband access technology of choice for SMEs and we see it as having distinct advantages over the competing broadband technologies," Stewart said. NetComm's existing distribution partners such as Dick Smith Electronics will be used to sell the service, he added.
Paul Fraley of Alcatel said "Up to 11 million lines are being opened up for competition and we believe at least 75 percent of them will prove acceptable for DSL services, with an estimated market value of up to two billion dollars within five years. Even a modest slice of this market will deliver significant returns and, as an early market entrant with a proven solution, NetComm is set to play a leading role in the delivery of new and emerging broadband services to Australian businesses and homes."
