Rural internet choices must pay

By PETER GRIFFIN

Telecom has several ways it could offer high-speed internet access to its 150,000 hard-to-reach rural customers - but is making clear that any service must pay its way to justify widespread adoption.

Extending Jetstream digital subscriber line (DSL) capabilities, two-way satellite, "fixed" cdma (code division multiple access) and broadband fixed wireless systems are all being considered to reach geographically scattered pockets of customers that on average cost Telecom between five and 40 times more than customers in the main centres to reach.

Among that high-cost group are 66,000 farmers, 45 per cent of whom have internet access, and a further 10,000 businesses which Telecom claims give "ample potential for the take-up of high speed data services" - if those customers are prepared to pay commercial rates.

Telecom is under increasing pressure from the Government to provide broadband services to every New Zealander and drop the price of its existing Jetstream service.

But the company claims calls by politicians for the rapid development of services for all are unrealistic.

Telecom's network general manager, Simon Moutter, said only 2 per cent of the one million customers capable of receiving fast internet services had so far signed up for Jetstream.

"I'd like a more pragmatic approach about the timetable. It's hard work supplying broadband in low-density areas. It's been a problem elsewhere in the world."

Mr Moutter also defended the pricing of Jetstream, saying it compared well internationally.

But Ernie Newman, the Telecommunications Users Association (Tuanz) chief, claims Telecom could double the uptake of Jetstream if it dropped the price by a third.

Top of the list of options for Telecom is extending Jetstream to rural exchanges and cabinets. This would allow the company to use its existing copper network, avoiding enormous outlay on new technology.

At "reasonable penetration" Telecom believes this will be the cheapest way to expand broadband services.

Telecom estimates rural communities of 500 and up could support the cost of Jetstream-enabling rural exchanges. Telecom now seeks firm interest from between 30 and 50 customers within a 6km "copper range" from a telephone cabinet before it will consider DSL.

But Jetstream in the country would not have the same reliability and speed as city-dwellers enjoy. A minimum two-way data rate of 128Kbps is realistic.

Also under consideration is two-way satellite, which comes with bit rates of 128-512Kbps outbound and only 32 - 128Kbps inbound. But while allowing Telecom to cover the entire country, the cost per customer is high - between $10,000 and $20,000 for a customer base of at least 5000.

Internet protocol wireless networks are also an option, but Telecom says these networks - used by the wireless provider Walker Wireless - are poor at providing voice services and cost twice as much as Jetstream to supply.

Telecom has also considered using its $200 million cdma network to provide a "fixed" version of the mobile services the network now offers nationwide. That would involve attaching antennae to customers' buildings, enabling them to receive a signal from Telecom's network of 228 cellsites.

But while cdma could offer voice and data services and cover 97 per cent of the population, it is slow.

And Telecom's chief technology officer, Dr Murray Milner, says reaching rural areas effectively may involve shifting cellsites higher, which would take them out of alignment with neighbouring sites.

Telecom says Jetstream has big growth potential - but only when services such as video-on-demand hit the market.