AAPT denies Broad hint on ADSL

AAPT won't be playing Santa this Christmas, as it has backed away from a commitment to offer broadband ADSL services over copper lines with lower line rental charges.
Comments last August by Paul Broad, chief executive of the carrier, owned by Telecom New Zealand, had led observers to expect the service, known as naked DSL, would be launched before Christmas.
Yesterday AAPT head of corporate affairs Than Shannon said Mr Broad had erred by saying the system would be launched by the end of the year.
"Maybe that was Paul speaking off the top off his head, but it was never our intent to release a naked DSL product before Christmas," Ms Shannon said.
The company expected to launch the naked DSL product sometime next year, she said.
Naked DSL lets consumers buy ADSL services without paying fees for voice services commonly embedded in line rental prices.
However, their release was held back while the Australian Competition and Consumer Commission wrangled on prices that Optus and Telstra could charge for unbundled local loop services.
The ACCC has set interim pricing for ULL services in metro areas outside the CBD (about 70 per cent of the market) at about $US17.70 ($19.80) monthly, compared with fees of about $US30 monthly for conventional line rentals.
Perth-based internet provider iiNet launched a naked DSL service last week, becoming the largest Australian internet provider to make it available.
IiNet chief executive Michael Malone said the company would be able to pass on savings to consumers of about $US15 monthly off their broadband bill.
IiNet said it would charge about $US50 monthly for the service, which would include internet telephony to replace Telstra's and Optus conventional voice services. AAPT said it was focusing its efforts on integrating with Powertel, which it acquired for $NZ357 million ($303 million) last April.
"Obviously we're watching what iiNet's doing very closely and obviously we'll learn from it. At the moment we're still focusing on our integration of Powertel and AAPT but we'll definitely be looking at a naked DSL offering coming in the future," Ms Shannon said.
Other internet providers also seem content to wait before launching services.
Internode said it was trialling naked DSL and planned to launch its offering in the first calendar quarter of 2008.
It is planning to include a voice over internet protocol service but it has declined to reveal pricing.
Internode product manager Jim Kellett said the trial had revealed challenges in setting up the service.
"The preconceived idea is that it's just going to behave like any other broadband, but there are always little wrinkles and challenges in getting the services set up," Mr Kellett said.
"That's what the trial seems to be revealing, so we're working our way through those and expect that trial to run for several months."
Mr Kellett said the company would not set pricing for the service before the ACCC released its final rulings on ULL pricing.
"Obviously it's prudent to have that component nailed down, as it is the biggest cost," he said.