100Mbps Telstra cable good enough for capital?

TelstraClear says it is investigating upgrading its InHome cable networks in Wellington and Christchurch so they can offer download speeds of 100 megabits per second.

The company says the upgrade would mean the networks could provide "substantially the same experience" as fibre-optic cable.

Local fibre companies established as part of the Government's $1.5 billion ultrafast broadband plan should be allowed to invest in them instead, it said in a submission to the Economic Development Ministry.

TelstraClear's investment would be in a new iteration of hybrid fiber-coaxial (HFC) cable technology, called Docsis3 that has been deployed overseas and which parent company Telstra has committed to implement in Australia's state capitals.

Its InHome networks currently provide top speeds of 10Mbps in Wellington and 25Mbps in Christchurch, where customers pay a hefty premium for the extra performance.

TelstraClear said the speed of HFC cable networks could double again.

"Virgin Media has said 200Mbps should be achievable and that it would like to offer this to customers by 2012."

Unlike DSL technology, HFC provides consistent speeds, which do not drop if customers are located far away from a cabinet or exchange.

The company signalled the economics of its InHome networks might be threatened if the Government subsidised fibre-to- the-home in Wellington and Christchurch, resulting in the "unnecessary triplication" of broadband networks.

Meanwhile, Wellington lines company Wellington Electricity downplayed the likelihood that it might become involved in the Government's fibre-optic plan, saying it was keeping "a watching brief". It has not joined a New Zealand Regional Fibre Group, established by Auckland lines company Vector.