Telstra, iiNet continue DSLAM rollout in wake of NBN

Telstra has defended upgrades to broadband services in northern Tasmania where NBN Co is set to begin connecting customers.

Upgrades to the incumbent telco's exchanges in Dilston and Bridport allowed customers in the area to receive ADSL2+ connections from this week.

However, the upgrades come as NBN Co contracted Lend Lease subsidiary Conneq for construction of fibre at seven stage 2 NBN sites in Tasmania, near the sites upgraded recently by Telstra. The sites will also trial council or industry-subsidised extension of the fibre footprint currently planned by the wholesaler.

Scottsdale is only 30 kilometres south of Bridport, where Telstra has installed ADSL2 connections. George Town, about 50 kilometres west of Bridport, has been announced as another town to be linked to the NBN in the next stage of the rollout.

Telstra's copper wires are scheduled to be replaced with NBN Co's super-fast optical fibres during the next nine years, pending finalisation of a $9 billion deal between the two companies.

Telstra Country Wide's general manager for northern Tasmania, Michael Patterson, said there would be no overlap with the National Broadband Network (NBN) with the latest ADSL2+ upgrade.

"These are outside our current plans for the NBN," he told AAP. "There's enough demand from our customers to invest in infrastructure to improve broadband."

A Telstra spokesman said the ADSL2+ switchover was part of an ongoing network upgrade where it made commercial sense.

Other telcos, including Internode, have continued to upgrade DSLAM equipment at Tasmanian exchanges despite the continued rollout of the NBN in the state. Industry sources indicate the return on investment for such equipment can range from between 12 to 18 months, depending on customer take-up in the area.

iiNet regional subsidiary Westnet has also continued extensive rollout of its DSLAM network under a $10 million commitment to build its ADSL2+ user base.

Since January 2011, NBN Co has been charged with installing optical fibre connections at greenfield sites, where housing is yet to be built.

Telstra was already installing optical fibres at housing developments under its Smart Community program, but this wasn't done in Tasmania.

Under national broadband network "cherry-picking" rules, NBN rivals can only lay high-speed optical fibres first if they resemble the government's network.

Additional reporting by James Hutchinson

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