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Internode invests $9 million in ADSL2 rollout

Internode invests $9 million in ADSL2 rollout

Broadband penetration to top five million by 2008

Australian owned IP carrier Internode has recharged its national ADSL2+ rollout with a $9 million program to install broadband equipment in more telephone exchanges nationally.

As well as starting to install its ADSL2+ equipment at 18 exchanges in the ACT, NSW, Queensland, SA and Victoria, Internode has announced 46 new telephone exchanges where it intends to deploy DSlam broadband equipment.

The new exchanges comprise 22 in NSW, 14 in Victoria and 10 in Queensland.

This brings Internode's broadband rollout to a total of 170 telephone exchanges nationally. Full details of Internode's ADSL2+ deployment schedule are available at www.internode.on.net/dslam.

Internode currently has its DSlam broadband equipment installed at more than 90 telephone exchanges throughout Australia.

Four exchanges on Internode's DSlam deployment schedule are marked "Blocked by Telstra", either because exchanges are reportedly full or no backhaul is available.

Internode suspended its national broadband rollout program at the start of this year due to the uncertainty created by Fibre to the Node (FTTN) proposals that threatened to strand its investment in broadband equipment installed in telephone exchanges.

Internode managing director, Simon Hackett, said the company's recommenced DLSlam deployments are an investment in providing Australia with fast broadband infrastructure.

"The best defence to a challenging regulatory environment is a good offence," he said.

"We have decided to continue building our broadband infrastructure to get on with being a strong competitor and trusting that the regulatory regime that has made this sort of vigorous competition possible will continue to be supported and strengthened by the federal government into the future.

"It is obvious that excellent consumer broadband outcomes are critically dependent on successful competition - so we're getting on with our part of it."

According to telecommunications analyst, Paul Budde, Internet access revenues (dial-up and broadband) showed very strong growth in 2006 and 2007 driven by strong uptake of broadband.

Budde said the revenue growth rate for 2006 was 27 per cent compared with 33 per cent in 2007.

"Strong growth is expected to continue moving into 2008, although I suspect the market probably peaked in 2007," he added.

Budde expects Telstra to increase its overall market share of Internet access revenues moving into 2008, extending its market share from 36 per cent in 2007 to 39 per cent in 2008.

"By late 2007 there will still be pent-up demand for another one million users and by 2008 broadband penetration in Australia will cross the five million mark," he said.


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