Under the agreement, end users will have the opportunity to source their voice and broadband connectivity from different companies via the same phone line. Although the technology requires additional infrastructure at the exchange, and a slight modification at the end users site, it ultimately promises to assist in the delivery of broadband services across the country.
Although the new deal applies specifically to services provided through Request DSL, Telstra Wholesale managing director Rosemary Howard did not rule out the possibility of extending the technology to cover other providers.
-At this stage we are working exclusively with RequestDSL, but clearly other broadband wholesalers will become involved as time wears on," Howard said.
According to RequestDSL CEO Philip Sykes, the deal would lead to more uniform pricing for high speed Internet access especially outside major CBDs. However, he conceded it would take longer to roll affordable services into households.
-We would be looking for at least 10 or 20 thousand business signed up before we could look at realistically rolling out broadband to households," Sykes said. -While spectrum sharing with have a fairly immediate effect on business, it will take longer for consumers to get the benefit."
Sykes believes the spectrum sharing agreement with enable RequestDSL to continue its impressive performance, with sign on rates already achieving a 50 percent month on month growth.
Howard was keen to point out its decision to introduce spectrum sharing (or line sharing) into the Australian market reflected Telstra Wholesale's keen desire to encourage and maintain competition in the market place.
However, with a planned launch date of July 2002, and -significant set up costs" still to be overcome, the spectrum sharing arrangement is by no means a quick fix to prospective customers champing at the bit for access.
If RequestDSL purchases capacity from Telstra, that does nothing to introduce competition to the Australian market.