Telecom to offer 'superfast' internet

Telecom plans to roll out a new generation of broadband internet mid-year that is 375 times faster than dial-up.

Telecom said it would begin installing the ADSL2+ technology in the main centres from June.

ADSL is the dominant broadband service used by telcos worldwide to provide high speed internet access through fixed telephone lines.

The new technology offered speeds of up to 24 megabits per second (Mbps), compared with an average dial-up speed of 64 kilobits (Kbps). It was seven times faster than the highest broadband speed currently offered to retail customers of 3.5Mbps.

The June rollout, costing an estimated $170 million, was part of a multi-year $1.4b transformation of Telecom's network, in partnership with Alcatel.

Matt Crockett, general manager of Telecom's Wired division, said the move to "superfast" broadband would usher in new services including video calling, interactive television and internet-based voice services.

He said Telecom planned to extend an internet protocol (IP) television trial, being conducted among Telecom staff, to several hundred households from mid-year.

The new service was interactive, allowing on-demand video, recording and playback options, and advert-skipping.

Some customers in major urban areas would also be offered dedicated handsets for home-based video calling.

Mr Crockett said the wider transformation of Telecom's network was on track, with the first customers set to move to Voice over the internet Protocol (VoIP) telephone services from early 2007.

He said the VoIP service was trialled throughout New Zealand last year, with positive feedback.

The new service used the internet to allow customers to access voicemail and message services remotely, and redirect calls from their home phones to another line.

Mr Crockett said the mass market roll out would complement services now available to corporate customers, offering broadband speeds of up to 1000Mbps.

Telecom has come under fire from rival telcos and the Government for falling behind world standards for broadband speed and uptake.

Many of its smaller rivals have lobbied the Government for local loop unbundling (LLU), which would force Telecom to open up its copper wire network to other companies.

Late last year the Government announced it was beginning a "stocktake" review of the telecommunications industry.

The review, set to be completed by mid year, covers issues including broadband pricing and uptake compared with other developed countries, upload and download speeds, data caps, and Telecom's progress on rolling out its new generation network.

Mr Crockett said Telecom was mindful of the impact of regulatory intervention on the viability of its investment.

"We share the Government's desire to take the world's best broadband to as many New Zealanders as possible, but this stuff costs money and we need to be able to make that stack up, particularly when you start rolling this stuff out, outside of the main metro areas," he told NZPA.

Shares in Telecom were trading down 2c at $5.29 by early afternoon.

- NZPA