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Digital subscriber line (DSL) is a very high-speed connection that uses the same wires as a regular telephone line. By way of contrast, naked DSL plans enable users to bypass costly line rental charges, maintaining only the broadband connection.
Australian broadband providers, including iiNet, Engin, TPG and Internode, are gearing up to launch the product as early as November of this year.
Alternative internet connections without the added cost of a landline are largely limited to either cable, which has limited coverage, or slower wireless broadband.
It must be acknowledged that although naked DSL plans are marginally more expensive than current DSL offerings, naked DSL's enable customers to forego $20-$30 a month in line rental fees.
Some of these providers, namely iiNet, Internet and Engin, will offer naked DSL plans bundled with VoIP packages, enabling customers to use the internet connection to make phone calls at a significantly cheaper rate than what is permitted by landlines.
Telstra has previously blocked residential naked DSL plans from being offered in Australia. This was possible due to Telstra's ownership of the copper infrastructure which enabled them to wholesale to competitors. Further, they previously set prices so high that they were largely unviable in the marketplace. Since a decision was made late last year by the competition regulator, however, access prices have been forced down, prompting competition within the naked DSL market.
There is a percieved niche for naked DSL's in the market as increasing numbers of people purchase and utilise mobile phones in place of a fixed phone. People still need access to a broadband connection, however they do not need the fixed phone. Naked DSL's solve this issue.
In terms of pricing, it is thought that entry level 4GB plans will cost around $44.95, which is $5 more than the ISP's equivalent regular ADSL plans currently.
Moreover, although iiNet is still in trial with this product, you can expect to see them offered to the market as soon as next month. Internode's plans are less concrete, however a current estimate places the products launch at Q1 of 2008.