GFC, NBN not hurting ISP DSL investment

Stephen Withers
Monday, 08 February 2010 14:29

IT Industry - Strategy

Neither the GFC nor uncertainty about the Federal Government's NBN plans seemed to stop ISPs from investing in DSL equipment during 2009.

According to Ericsson, which supplies hardware to a variety of Australian ISPs, fixed broadband investment was about 10% greater in 2009 than in 2008.

Most of the new equipment was ADSL2+ DSLAMS and associated edge routers, but some ISPs also experimented with VDSL2 DSLAMs for in-building access, Ericsson officials said.

An estimated 359,000 new DSL subscribers were added during 2009, and Ericsson shipped enough equipment to ISPs to provide an additional 100,000 lines.

"Clearly broadband is now an essential service for Australians with even late adopters taking up a broadband service," said Colin Goodwin, broadband strategy manager for Ericsson Australia."

"In addition, ISPs continue to innovate beyond simple Internet access into new services, such as IPTV, which they believe will further boost subscriber numbers," he added.

Goodwin also pointed out that some of the more advanced ISPs - including iiNet, Optus, M2, and TransACT - have been installing edge routers that will facilitate connection to wholesale FTTP networks such as the NBN.