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3755 posts

Uber Geek
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Spark NZ

  Reply # 587591 27-Feb-2012 21:36
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Talkiet:  I don't know exactly why the VDSL pricing is what it is. I do know significant development was done to make it work (anyone that says otherwise is flat out lying or very badly informed). I also know it's not in high demand, and certainly doesn't have any mass market pull, so volumes will be much lower.

Can you explain why the product cost more to develop?  It's just a different line card and a different modem on the other end.  What's so different that's so expensive?  (For the benefit of readers, I'm not saying Neil is wrong and challenging that, I'm asking him if he'll share so we can get some appreciation)

Sorry Don, but the fact you appear to have the impression that it's just a new line card and new modem says it all really. There's a lot more than just a new line card and modem. There's new systems, new inventory management, differing backhaul arrangements, new fulfilment, new support processes, upgrades to related systems among other things.

It all adds up to significant work by a number of people, all for a product that doesn't have mass market appeal. Add that to the apparent overlap of speeds of VDSL and the UFB products and it's clear that there's not a lot of money in VDSL.

I think it's GREAT that for those users that really need it, if they are close to a cabinet then they probably have access to a 'better than ADSL2+' service right now. Expecting a niche product with low uptake to be priced the same (or even nearly the same) as a hugely mass market product is unfortunately naive.

I want a much faster car, it's more expensive than the one I have now - I make the choice to keep on with the car I have and I accept that a better, faster car made in much smaller volumes is simply going to cost me more.

Enough tortured analogies. VDSL2 is an option, it costs more than ADSL2+. The choice is ours as consumers.

Cheers - N

281 posts

Ultimate Geek
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  Reply # 587688 28-Feb-2012 09:14
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To be fair, VDSL2 is a victim of UFB, which is both a good and a bad thing,

It's good because we have a once in a generation infrastructure upgrade to fibre fully locked and loaded for build.

It's bad because we have missed out on an intermediate step up to VDSL2, even though the kit is sat out there in the FTTN cabinets (why would Wholesale/Chorus invest more in developing and supporting VDSL2 mass market when they are incented to facilitate the sale of UFB products?).

If I had a crystal ball I'd suspect we might see some movement in the VDSL2 space in the next year, especially when people start getting UFB connections and those still looking at a 2+ year wait for their UFB line get antsy.

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