D-Link says ‘yes’ to Optus DSL deal

Networking vendor D-Link has been appointed the exclusive supplier of ADSL modems to Optus as part of the telco’s DSL rollout that commenced last month.

D-Link has been directly supplying Optus with the modems since December, when it snared the deal over three other vendors.

It is a significant win for D-Link, providing the vendor with a valuable entry point in to the mass market. Maurice Famularo, D-Link’s marketing director, said D-Link’s ADSL business will increase 40 per cent in 2004 as a result of the Optus deal. The vendor currently ships in excess of 20,000 ADSL modems per month in Australia.

According to Famularo, it was D-Link’s ability to meet the strict guidelines of the tender, which included the warehousing of stock and meeting tight supply schedules, that won it the deal.

“We also worked closely with Optus to develop a customised front-end that was easy to use for Optus customers. I’m not sure if the others [contenders] were able to do that successfully.”

Under the contract, D-Link will directly supply Optus with the modems and Optus will provide support services.

Famularo said in order to remain price competitive, the vendor did not engage its distributor partners in the deal.

Optus began rolling out its OptusNet DSL service last month in an effort to tap in to the huge residential markets in Sydney, Melbourne and Brisbane where users were unable to subscribe to Optus’ broadband cable service because they resided in multi-dwelling units.

Under the OptusNet DSL package, persons living in all types of housing, and across the country (NSW, VIC, ACT, QLD, SA and WA), can access the service.

Optus is using Telstra's Layer 2 wholesale DSL service for its ADSL broadband product. The main benefit of Telstra's service is the number of exchanges it has enabled –- over 1000 installed across the country.