High-speed Net from Telecom

By Keith Newman

Telecom has let its fast Internet service out of the bag after keeping it in test mode for nearly two years, but the product may not be as competitive as many users had hoped for.

Xtra customers using the JetStream service, announced yesterday, will pay $119 a month including modem rental, to subscribe to a speedy link into cyberspace. The service, also being sold direct by Telecom at $69 a month, has a megabit charge of 35c after 600Mb of downloading per month.

Signing on will require a $299 installation fee, although users have the option of buying a Nokia xDSL modem for $450. PCs with external modems will need to buy a $50 Ethernet card. Other Internet providers are currently in discussion with Telecom about offering the service.

The only other high-speed Internet provider currently is Ihug, which charges $69 for unlimited access at 400Mbit/sec via satellite and wireless technology. The company intends to reduce its high-speed charges further as it adds new services within the next few weeks. Ihug users also have to buy receiving equipment which costs $300.

Telecom's digital subscriber line service (xDSL) has been continually tested since November 1997. The technology operates over the copper telephone network and allows customers to simultaneously surf the Internet and talk on the telephone or send a fax. The service can also be used to provide workers at remote offices direct access to their corporate local area networks.

Rather than taxing the voice network, JetStream uses Telecom's IPNet. Users can stay on-line all the time without incurring time-based charges.

Telecom has upgraded over 30 exchanges in Auckland, Wellington, Christchurch, Palmerston North and Hamilton and will progressively extend its access points for the digital subscriber line service across the country. It will initially be available in central business districts and high density residential areas including Remuera, Ponsonby and Mt Albert.

Optimally the xDSL, which enhances the data-carrying capabilities of the copper telephone network, can offer 6Mbit/sec downstream and around 1Mbit return path. But Telecom dropped plans to offer television over the link after trials in Wellington.

Telecom spokesperson Glen Sowry said the service would remain cost effective against leased lines and ISDN digital circuits, which he said were better suited for critical and secure use within business.

"DSL will appeal to a residential market of keen Internet users and law firms for downloading large archived material or architectural firms shifting large drawings, for example."