Stephen Withers
Wednesday, 02 July 2008 13:25
IT Industry -
Market
Page 1 of 2
In what must be a worrying sign for Telstra's traditional voice telephony business, naked DSL is proving to be a smash hit for Australia's third largest ISP iiNet and its customers. iiNet claims it has signed up more than 25,000 households in six months, and that two-thirds say they're saving at least $20 per month on Internet and phone charges.
Naked DSL is the provision of Internet connectivity delivered over a phone line that does not also carry a conventional phone service or the associated Telstra line rental charges (at least not on the customer's account).
A decision by the ACCC (Australian Competition and Consumer Commission) forced Telstra to rent its copper lines to ISPs at prices that allow them to provide competitive services. ISPs began offering naked DSL in late 2007.
This was bad news for Telstra, as recent years have seen call costs remain static or fall, while line rental charges have increased.
Where people kept their Telstra line in order to obtain ADSL service, they have been increasingly turning to independent VoIP providers such as MyNetFone and Engin to further reduce call costs. ISPs such as iiNet are increasingly bundling VoIP with Internet services.
If naked DSL customers want phone service, VoIP provided by the ISP is an obvious choice. The switch from PSTN to VoIP is further eased by providers such as GoTalk which can port the customer's existing number to a VoIP service.
So what's happening with the one-third of iiNet naked DSL customers that say they're not saving at least $20 per month?
Please read on.
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