38,500 on fast broadband link by Christmas

Telecom's new high-speed broadband network is spreading across Dunedin, even as the company's competitors consider moves into southern markets.

Swathes of the city will be covered by Telecom's new high-speed ADSL2+ network by year's end, lifting maximum speeds from 7.4 megabits per second (Mbps) to between 10Mbps and 24Mbps.

The Dunedin City Council is also expected to unveil details of its application to the Government's Broadband Challenge fund next week, as part of plans for a fibre and wireless network linking the city's businesses, schools and suburbs.

And this week TelstraClear, Vodafone New Zealand (owner of ihug) and Orcon all confirmed to the Otago Daily Times they were considering building their own networks in Dunedin by adding hardware to Telecom's exchanges and cabinets.

Such a move could come once unbundling - by which Telecom was obliged to allow access to its cabinet and exchange hardware to competitors - progressed in the city, probably next year, company staff predicted.

Telecom's new ADSL2+ network in Dunedin is being built by the company's network access business, Chorus.

Chorus product management general manager Chris Dyhrberg said 38,500 customers would have access to the new high-speed network by the end of this year, mainly in the city centre and suburbs, including Mosgiel, Macandrew Bay, Mornington, Northeast Valley and South Dunedin.

Already, 36,000 customers had gained access when Telecom's existing cabinets were upgraded earlier this year, he said.

A further 76 new cabinets were needed across the city to spread the ADSL2+ network to further parts of the city. Nine had since been added in Macandrew Bay, Mornington and Northeast Valley, connecting about 1300 additional customers to the new service.

Another five - one more in Northeast Valley and four in South Dunedin - would be in place by Christmas, adding 1200 more people to the network, he said.

The rest of the city and centres across Otago would be added progressively in the years to 2011, he said.

Residents in Ocean Grove, Shiel Hill, Highcliff and The Cove were expected to be connected by the end of 2009; Brighton, Ocean View, Waldronville, East Taieri, Fairfield, Wingatui and parts of Portobello and Sawyers Bay by the end of 2010; and Saint Leonards by the end of 2011.

Otago centres linked to the network were Queenstown, Arrowtown, Wanaka, Alexandra, Cromwell, Oamaru, Brighton, Balclutha, Milton, Waikouaiti, Ranfurly, Palmerston and Roxburgh.

Mr Dyhrberg said 50% of users could expect to gain access to speeds in excess of 20Mbps through the new network, and 75% to speeds of over 15Mbps, opening the door to more sophisticated online content.

The project was costing Telecom $21.5 million, including $11.9 million for work in Dunedin and $9.6 million for an additional 64 cabinets needed across Otago.

Vodafone spokesman Paul Brislen said his company had been "Auckland-centric" to date, but was looking at potential markets in Dunedin, Christchurch and Hamilton for next year.

TelstraClear spokesman Chris Mirams said the company already had a fibre ring circling Dunedin's central business district, but further expansion in the city was "certainly being considered strongly".

Orcon was also "keen to offer unbundled broadband services to Dunedin as quickly as we can", chief executive Scott Bartlett said.

 

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