National Broadband Network could expose naked DSL

Naked DSL: fleeting fad or here to stay? The new NBN may decide

Fellow telco analyst, Paul Budde of Buddecom, agrees with McDonnell's belief that naked DSL has a limited lifespan.

Echoing iiNet customer's chief reason for moving to naked DSL, Budde believes its popularity is in response to the high fixed line prices Telstra forces. But that very draw card could be its undoing if a fibre solution is implemented.

There are many ways to skin the cat, and naked DSL is only one of them

Paul Budde - Buddecomm analyst

"It's all about price, that's the only thing. Its not that we love naked DSL because it's this beaut technology. Telstra could tomorrow lower the price of broadband and fixed line rental and naked DSL wouldn't be necessary anymore, but they simply want to protect their line rental at this stage," Budde said.

"I think [naked DSL] is limited to whatever the next new trick will be. If tomorrow there is something either cheaper or better, then people will go for that. There are many ways to skin the cat and naked DSL is only one of them.

"It will always be a niche market, at the right time at the right place for the right people, and in six months time the place, time and people are different again," he said.

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