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Home > News From Kinetics > ADSL2 and you ...

ADSL2 and you ...

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With all the talk in the media about ‘ADSL2’, ‘Local Loop Unbundling’ and ‘Naked ADSL’, there is still a big question mark around what difference it will make to businesses that use the internet.

What is ADSL2, Local Loop Unbundling & Naked ADSL?

Second-generation ADSL broadband or ‘ADSL2’ as it is commonly known is a new service being provided by selected Internet Service Providers (ISPs). While first-generation ADSL offers speeds of 8MBps downstream and 800kbps upstream, ADSL2 offers speeds of 24MBps downstream and 1000kbps upstream. Of course, the actual speed of the connection will depend on factors such as distance from the exchange, quality of the phone lines etc. For a more detailed description of ADSL2 you can visit http://www.geekzone.co.nz/inquisitor/3014.

Local Loop Unbundling or LLU is where ISPs are given access to the cabling infrastructure that Telecom owns and are allowed to place their own equipment into the Telecom exchanges to provide a service almost completely independent from Telecom. Before LLU, ISPs would ‘wholesale’ from Telecom by using Telecom’s equipment at the exchanges and would resell Telecom’s phone & ADSL services to end users.

Naked ADSL is a service that is now being offered by ISPs which allows end users to have ADSL at their premises without the need for a phone account. The physical phone lines are still there but the voice part of the lines is not connected and therefore no line rental needs to be paid, only the ADSL service. Before LLU, ISPs were forced to offer ADSL only in conjunction with a voice line as this was a condition of the wholesale agreement Telecom required ISPs to sign.

Who is offering ADSL2?

To our knowledge ADSL2 is currently only being provided by Telecom/Xtra, Orcon, Slingshot and Xnet but other ISPs (including Vodafone/Ihug & TelstraClear) will be implementing ADSL2 in the near future. The best way to find out if your ISP offers ADSL2 is to contact them directly.

What are the benefits of ADSL2/LLU/Naked ADSL?

  • ADSL2 will offer faster speeds for most users who switch from ADSL, more noticeably for users who are close to their exchange (within 2km). The difference in performance decreases the further away from the exchange you are.
  • ADSL2 increases the theoretical range of ADSL by 500m which may put it in reach of users who are currently just beyond the limit of (approx) 5km for ADSL
  • With LLU allowing ISPs to offer broadband plans directly to customers instead of wholesaling, competition should increase with lower prices and bundle deals for users who decide to switch to the new offerings from ISPs. Note: this competition also extends to voice services for both home users & businesses. For example, some ISPs are offering free local calling and reduced national/international calling rates for businesses who switch to their LLU service when bundled with ADSL2 broadband.
  • Naked ADSL will be popular with home users or shared flatting situations who do not wish to use a landline or with businesses who want to use Voice over IP (VoIP) solutions instead of traditional landlines. Note: VoIP requires a stable internet connection with high bandwidth availability and therefore will be unsuitable to use with ADSL for most businesses.

What are the disadvantages of ADSL2/LLU/Naked DSL?

  • ADSL2 is more sensitive to the quality of the phone line and may therefore disconnect more often than ADSL on phone lines with high line attenuation (line noise) or when the premises is further from the exchange.
  • Since LLU & ADSL2 is in its infancy in NZ, there may be some ‘teething issues’ with switching over to LLU/ADSL2. We have experienced issues such as phone line disconnections, ADSL disconnections and slow internet speeds at peak times after switching from ADSL to ADSL2. These issues should go away with time, but it can cause disruption to users in the short term.

Summary

We have had mixed experiences with ADSL2 - the overall speed increases & cheaper pricing have been marred by intermittent phone & ADSL disconnections and slow speeds at home user peak times (6-11pm). Things are moving in the right direction with ADSL2 & LLU but teething issues may warrant waiting for 6-12 months for the problems to be ironed out before jumping on the LLU train. Please contact your Kinetics Account Manager to discuss if ADSL2/LLU is right for your business.