Gradually, larger ISPs began taking over more of the delivery infrastructure themselves by taking advantage of regulated access to the unconditioned local loop
. As well as significantly reducing costs, it gave the service providers complete control of their own service networks, other than the copper pair (phone line from the exchange to the customer). The first competition to Telstra's DSLAMs was provided by then Optus subsidiary XYZed, launching business-grade xDSL services from 50 exchanges in September 2000. Competition in the residential infrastructure market began in 2003, when Adelaide-based ISP Internode installed a DSLAM in the town of Meningie, South Australia. Several other service providers have since begun deploying their own DSLAMs. The presence of non-Telstra DSLAMs allowed the service providers to control the speed of connection, and most offered "uncapped" speeds, allowing the customers to connect at whatever speed their copper pair would allow, up to 8 Mbit/s. Ratification of ADSL2 and ADSL2+ increased the maximum to 12 Mbit/s, then 24 Mbit/s.
In 2005, Telstra announced it would invest A$210 million in upgrading all their ADSL exchanges to support ADSL2+ by mid 2006, though they did not say whether they would continue to restrict access speeds. However, in 2006, they announced new intentions to substantially alter their copper phone network and setup a "Fibre to the Node (FTTN)" network. This was later scrapped, with Telstra citing regulations forcing it to provide cheap wholesale access to its competitors as the reason not to invest in upgrading their network.
In late 2006, Telstra uncapped their retail and wholesale ADSL offerings to the maximum attainable speed of ADSL to 8 Mbit/s, however with a limited 384 kbit/s upstream speed. This has allowed many Australians access to higher speed broadband, while the comparatively lower wholesale rates discouraged competitive infrastructure investment in most cases.