In a move which will dramatically step up competition in residential and business broadband and telephony services, Optus today announced a major DSL rollout.
Optus will install its own DSLAMs (DSL Access Multiplexers) in a large scale, national rollout commencing immediately. Once complete, the full rollout will extend to approximately 340 exchanges.
Optus will invest over $150 million - in DSLAMs and in fibre connections from the exchanges back into the main Optus network.
"This new competitive network will reach an additional 2.9 million households and businesses, adding to our existing cable footprint which passes 1.4 million homes in Sydney, Melbourne and Brisbane. This investment has the direct effect of increasing competition and choice," Optus Chief Executive, Paul O'Sullivan said.
"We will now be able to offer millions of Australian homes and businesses choice as well as the quality internet and customer service that Optus is well known for."
The new DSL services expected to launch by the end of the year will extend Optus' footprint to reach Adelaide, Perth and Canberra. Optus expects to have rolled out to almost 100 exchanges by April 2006.
The expansion will also extend Optus' services to units and apartment blocks within the new footprint.
"Our ability to better control the connection from our core network to our customers premises will enable us to offer better download speeds, more value adds and will enhance the overall customer experience," Mr O'Sullivan said.
Apart from stimulating increased subscriber growth and improved margins, this new network will mean Optus will be significantly less dependent on the incumbent in the provisioning and servicing of customers.
The DSLAM will connect to the copper wire running from the Telstra exchange to the customer's home. Under a regulatory framework known as Unconditioned Local Loop (ULL), Optus leases the copper wire and obtains significantly more control over services delivered to the customer.
Mr O'Sullivan said that while Optus had made its decision to proceed with a launch, there would need to be ongoing work by the ACCC.
"Despite many months of negotiations, Telstra has refused to provide a price for the ULL service that we consider commercially fair," Mr O'Sullivan said.
"Therefore we will shortly be lodging an access dispute with the ACCC. But we will not let this delay our launch date.
"Optus is determined to build a competing access network - so that we can liberate millions of Australians from the current monopoly provider, by offering real choice and real value."
Mr O'Sullivan said that in addition to the plans announced today, Optus was further developing its 'Bridge to Broadband' proposal to align with the Government's recently announced 'Connect Australia' package.
With appropriate assistance under that package, Mr O'Sullivan said that Optus would be ready to commit to a substantial national rollout extending well beyond the areas that would otherwise be commercially viable in the foreseeable future.
Optus currently has 406,000 broadband subscribers, 419,000 dial-up internet users and more than 1.1 million residential telephony customers. In March 2004 Optus launched OptusNet DSL and today is Australia's largest DSL reseller with 162,000 subscribers.
Note to editors:
Paul OSullivan will officially announce the roll out during a speech at a CEDA Luncheon in Brisbane today and will be available for a door-stop following the speech.
Media contacts:
Sheila Dhillon / Melissa Favero
Optus Corporate Affairs
Tel: 02 9342 9021 / 02 9342 5030