Clear to launch DSL service

By MICHAEL FOREMAN

Clear Communications is about to launch a business-only digital subscriber line (DSL) service, but plans to wholesale Telecom's Jetstream broadband product have been shelved.

Clear manager of internet access Lindsay Cowley said a DSL service aimed at business users would be launched in two weeks as part of the company's existing Tempest high-speed connection.

The new service will operate at speeds of up to two megabytes a second, but internet users who had been expecting Clear to compete with Telecom's Jetstream service will be disappointed.

Tempest DSL prices will start at $199 a month for 1000Mb of traffic with an 18c a megabyte surcharge for additional traffic. A flat rate service will be available for $499 a month.

By comparison, Telecom charges $99 for 400Mb a month under its cheapest Jetstream plan, with a traffic surcharge of 20c a megabyte.

Telecom offers no flat-rate Jetstream plan, but a 10,000Mb a month allowance is available at $999 with a surcharge of 12c a megabyte.

Last November, Clear was granted wholesale access to the Jetstream service as part of an agreement between the two companies.

Although Clear was technically capable of making use of this facility, Mr Cowley said Clear would not be re-badging Jetstream in the nearfuture.

"We could have rushed out [a DSL service] on Telecom's network as soon as the interconnect agreement was reached, but that wasn't in Clear's best interests."

Mr Cowley said it was "unlikely at this stage" that the Tempest service would be offered through third-party ISPs.

"We see Tempest as being very early in its product life cycle, but we are not ruling out that possibility in the future."

Ernie Newman, chief executive of the Telecommunications Users Association (TUANZ), described Clear's move as "very disappointing."

"It's another offering that will only be available in the main centres, which are already flooded with broadband services. However, you only have to go a short distance into the outer suburbs and there is zilch.

"It does underline the need once again for a whole new look at the regulatory environment in telecommunications because users are being short-changed at the moment.

"As far as TUANZ is concerned the unbundling of the local loop is the only solution, and we will be making that recommendation very strongly to the select committee that is looking at the telecommunications bill."