Wellington, Jan 30 NZPA - Telecom is being praised for improving its network and for investing in its core home market.

Telecom said today its new VDSL2 (Very High-Speed Digital Subscriber Line 2) will be offered from fibre-fed roadside cabinets and local telephone exchanges.

VDSL2 was expected to offer download speeds of up to 50Mbps and upload speeds of up to 20Mbps to customers who live one kilometre or less from an exchange or roadside cabinet.

Tuanz, the Telecommunications Users Association, welcomed the announcement of the VDSL2 launch and Telecom's intention to offer it to wholesale customers. This means that residential customers would have a range of suppliers.

"We recognise that Telecom these days is putting its key investments in its core business -- a very welcome change from the days when major investments were made in other countries, or adjacent markets, leaving the core home market to lag behind," said Tuanz chief executive Ernie Newman.

But Tuanz said the goal of having fibre to every customer remained.

Already 57 per cent of New Zealand lines can take advantage of Telecom's next generation access network and this would grow to 84 percent on completion of the fibre-to-the-node roll out in 2011.

VDSL2 broadband plans will most benefit those who regularly download large files or use their broadband service for multiple voice, video and other applications.

VDSL2 had been tested for several months, said Telecom wholesale chief executive, Matt Crockett.

"We're excited to be getting the VDSL2 roll out underway in key metropolitan centres across New Zealand.

"With the fibre-to-the-node programme hotting up and shortening copper loop lengths across the country it's the perfect time to deploy VDSL2."

From March, VDSL2 line cards will be progressively installed into all roadside cabinets and local telephone exchanges in towns and cities with more than 500 lines.

In the second quarter of 2009, Telecom will offer service providers a new, dedicated VDSL2 broadband product initially available in key Auckland exchange areas, with roll out to all major cities and towns in the third quarter of the year.

Service providers can then offer VDSL2 broadband plans to their retail customers based on their needs, and their proximity to the nearest telephone exchange or roadside cabinet.

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