Getting naked not worth it: AAPT

Getting naked not worth it: AAPT

Summary: Despite the rush by other providers to start selling so-called naked DSL, where broadband is sold without a phone line, the nation's third largest telco AAPT today said it would continue to hold back on the grounds that the product has been priced too low.

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TOPICS: Telcos, Broadband, AAPT, NBN
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Despite the rush by other providers to start selling so-called naked DSL, where broadband is sold without a phone line, the nation's third largest telco AAPT today said it would continue to hold back on the grounds that the product has been priced too low.

AAPT GM networks and technology, David Yuile

Western Australian telco Amcom was the first provider to launch the service in November. It was quickly followed by iiNet and a raft of other providers such as Internode and Exetel.

AAPT's general manager of networks and technology, David Yuile, said the telco was watching with interest, but didn't think it was prudent to jump into the fray.

"We think with the price point that naked's gone out at, it's going to be difficult for [providers] to make money," he said, adding that the support costs for naked are higher than for normal broadband, because the carrier was running a dedicated unbundled local loop service over the copper telephone lines. Traditonal DSL broadband has been based on the line sharing service standard, a different offering from wholesale provider Telstra.

"The cost of fault-finding to that piece of equipment at the end of the [line] is a lot higher," said Yuile.

In addition to this cost burden, Yuile said that fixing quality issues becomes a murky area with naked DSL. If a normal phone line didn't work, he said, it was Telstra's duty to fix it as the wholesale provider, but it's less certain when internet telephony quality takes a hit. Internet telephony or VoIP runs on top of the broadband connection rather than as a separate service.

"Consumers are quite demanding. They want to pick up the phone and have it work," he said.

This stance represents an about turn from AAPT's aggressive statements in August last year, when the group's CEO Paul Broad promised naked DSL by Christmas.

However, the telco is not totally ruling naked DSL out, Yuile said. It just wants to wait until the offering matures. "We think naked's got a place, but it's got to settle," he said.

Topics: Telcos, Broadband, AAPT, NBN

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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Talkback

16 comments
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  • Priced too high more like it

    GB for GB, in my experience, naked dsl is more expensive to the point where if i were to cancel my DSL2 and convert to naked DSL i would only save $10 a month. Then i have to make calls via mobile or over the VOIP, so it may actually end up more expensive. Tis is a shame, because it's a good idea and i hate paying for phone line rental when i don't use it.
    anonymous
  • AAPT in it for the money

    Of course AAPT. You want to keep the profitable POTS service alive

    Could be AAPT relys on POTS as there main source of income?
    anonymous
  • Get with the times

    David Yuile - look at Exetel and Internode to begin with you clown! As if people would sign up with AAPT now with comments like yours!
    anonymous
  • Naked DSL not too expensive.

    I have been a customer with naked dsl & voip through iinet since churning over to them about 12mths ago. The great thing about naked dsl with voip is i never have to pay line rental, local or std phone calls ever again, i pay a fixed monthly fee of $79.95 with 60gb and registering 19Mbps, which is alot faster that what i was getting with other ISP's, now i am saving nearly $90 a month thats nearly $1000 a yr.

    The downside with naked dsl is, when the power is out you wont be able to make any phone calls from your home phone.

    Compared to what i was paying to AAPT & Telstra, i was paying line rental,no included calls, small download quota plus pay the calls that you make ontop of everything else.

    If you shop around abit you'll find a great deal.
    anonymous
  • Naked DSL is cheaper

    I have been using BigPond and a Telstra home line and have just switched to iiNet Naked DSL. Of course, I also have a mobile phone just like everybody else. For me, it is much cheaper. I don't need a degree to work this out. As to the quality of the broadband and VOIP, it remains to be seen as the switching to iiNET will happen next week. I hope it lives up to the expectation.
    anonymous
  • Wait for the first person to die

    People will not be able to blame anyone else but themselves. One the the issues with most VoIP providers is that the numbers will not correctly direct emergency services to their address and as others have stated no power = no phone calls = wasted time in finding a mobile or another phone line.

    I can see the tombstone now:

    RIP
    HE LIVED A WONDERFUL LIFE
    SAVED A FEW DOLLARS
    JUST DIDN'T LIVE LONG ENOUGH TO SPEND IT
    anonymous
  • Could the Telstra fan boys please go away

    There are no issues with connecting to emergency numbers anymore. Internode did have that issues when VoIP was in BETA.

    Emergency situations are a moot point, everyone has a mobile phone. If you inclined to be on the edge with technology and you go with VoIP, chances are you have a mobile phone already.
    Besides with the savings you make you can buy a cheap UPS. The upside to that you know with confidence your UPS system is superior to Telstras in the exchange. Telstra has forgotten about maintaining them! They are doing the same with there copper network, no more refills for the gas/air cylinders to keep the cables and wires in them dry from moisture!..
    anonymous
  • Could the paid professionals get banned

    They look for every avenue to debunk, refute or twist every comment into anti-Telstra propaganda.

    Here are some headlines you can save for future use:
    Global Warming - It's real and it's Telstra's fault
    Telstra causes interest rate increases
    Queensland communications knocked out because Telstra has poor business continuity planning
    Who cares let's just blame Telstra

    Great idea, save a few dollars so your could spend it somewhere else to compensate for the failings of your cheaper solution
    anonymous
  • save a few dollars

    undetaker wrote " Great idea, save a few dollars so your could spend it somewhere else to compensate for the failings of your cheaper solution"
    Spend it on a UPS or your time complaining to the TIO when the services stop working
    anonymous
  • and of course that won't affect IINet

    1. you are dreaming if you think telstra don't have back up generators.

    2. Who do you think supplies the power to IInets rack in the exchange

    3. If telstra main are falling over, how is your naked service working??

    don't talk absolute rubbish
    anonymous
  • Clear up the comment

    That comment was directed to the smart home user who wants to save a few dollars only to go out and buy a home UPS to backup power so they can continue to use their router, ip phone and home computer.

    I have no doubt Telstra runs UPS & generators in their exchanges as well as getting feeds from multiple power grids.

    I would be surprised if 1% of home users would consider a UPS let alone buying one.
    anonymous
  • No Mobile Coverage

    My house has no mobile coverage, and I live in Frankston, VIC
    anonymous
  • re: No Mobile Coverage

    Have you tried using your mobile instead of your house?
    anonymous
  • mobile coverage

    yeah, my house has great mobile coverage! but it's a bugger to carry around.
    anonymous
  • What - somebody other than Telstra saying there is no money in it???

    I cant believe my eyes

    Another organisation agreeing with Telstra's assesment of costs - which drive price to customers

    Amazing
    anonymous
  • Naked DSL

    That sounds pretty decent.

    Just out of interest, how often does the VOIP fail when the power is not out?
    anonymous