Internode to resell Telstra ADSL2+ as Telstra tries for the win
Internode customers are set to benefit from Telstra's attempts to convince us that it can be trusted to share the National Broadband Network with the other kids.
For a long time Telstra flatly refused to make its ADSL2+ service available to competitors via Telstra Wholesale. This meant other ISPs were restricted to offering ADSL1 unless they installed their own ADSL2+ DSLAMs in telephone exchanges.
Some people would say this is fair enough, if Telstra shareholders want to invest in new technology for its network then Telstra shouldn't have to give up this competitive advantage by letting other ISPs piggyback on the new infrastructure.
Other people would argue that the national copper network should be there for the benefit of all Australians, not just Telstra shareholders. This was the case before Telstra was privatised, when it was owned by all of us. When Telecom was privatised, the government of the day chose not to hive off the physical infrastructure to remain in government hands. As a result, Telstra has held a stranglehold over the infrastructure which has hindered competition and new services ever since.
Now there's talk of a National Broadband Network (NBN), offering a chance to break Telstra's stranglehold. The government seems determined to ensure it doesn't hand Telstra complete control of this new network as well. How determined the government is remains to be seen, as Telstra is playing hardball and politicians are known for their back flips. If Telstra can't get it right, the government is threatening to step in and chop Telstra in half to separate the retail and infrastructure arms.
Telstra insists it can be trusted to control the NBN and share it fairly with others, although its track record would say otherwise - such as when it dropped Bigpond retail prices to below Telstra Wholesale prices a few years ago, decimating the competition before the competition watchdog could do anything about it. The big question is will Telstra be prepared to share access to the NBN on reasonable terms, or will it consistently thwart competitors as it has done for the last decade.
To prove it can change its spots, Telstra is now sharing access to the ADSL2+ network it swore it would never share. Starting next month, Internode should be able to offer more customers access to ADSL2+. It remains to be seen if ADSL2+ will be available to existing Internode customers stuck on ADSL1. This would be great new for customers stuck on Internode's expensive ADSL Plus plans (like me), which offer up to 8 Mbps but are around $30 more expensive than the ADSL2+ plans.
The new Telstra deal will also give customers the option to get their PSTN phone service from Internode, although Internode customers will not able to sign up for Naked DSL (without a PSTN service) through a Telstra DSLAM - "Naked DSL is against the Telstra religion," according to one industry insider. A close read of Telstra's "I can't believe its not an NBN tender" makes it clear Telstra has no intention of allowing Naked services over the NBN if it gets its way.
While Internode already has equipment at 110 exchanges plus a wholesale agreement with Optus that covers 350 exchanges, the new deal with Telstra will provide the ISP with access to approximately 1400+ exchanges. In the last few months Telstra has signed similar agreements with People Telecom and WestNet.
In the short term this is good news for non-Telstra customers stuck on ADSL1, although it spits in the eye of the poor suckers who reluctantly signed long contracts with Bigpond (up to three years) because they couldn't get ADSL2+ from anyone else.
So is this a sign of a new caring, sharing Telstra, or just a calculated move to score points in the NBN debate? Anyone who has followed Telstra's antics over the last decade knows the answer.
Other Blog Entries written by Adam Turner:
Thoughts on this article? Add a comment below.
Comments: 4
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SirSquidness
Nov 27, 2008 6:26 PM
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Oh, shazam. That's great. I might finally be able to get real ADSL2+ here. ^_^ |
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Macka
Nov 27, 2008 6:45 PM
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As stated Telstra was given the copper network. Their actions show that they should never be allowed to control anything else. |
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crazyed
Nov 29, 2008 10:11 AM
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SCARY is how I sum up our (Australia's) immediate internet future. I think allowing any 1 company to control infrastructure in the way that Telstra does will be like giving control of Australia's transport system to the Mafia. Thanks to the current climate of shareholder worship "customer service" has become a dirty phrase (not just with Telstra) and because Telstra controls so much already we have been severely held back. Countries like the US are way ahead in the level of internet they provide for a set price. Gosh even people in the Czech republic can get a better deal. I live in a rural area so I do know what I am talking about.
The NBN can be BUILT by anyone but should be OWNED by all AUSTRALIANS. Call it the ultimate "Customer service" that our government can provide. |
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nix
Dec 1, 2008 5:21 PM
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Woohoo. ADSL2+ in my exchange, finally. Glad I'm with Internode. :) |