Q2: What exactly is the "exchange"? Is it the mini-DSLAM down the road?
No, that is not an exchange. Guys like ponder can correct me here... but I'll give it a go for you!
A simple ADSL network = Customer -> DP -> SDC -> MDF -> DSLAM -> Switch (this is all copper based).
[DP = Distribution Point, SDC = Street Distribution Cabinet, MDF = Main Distribution Frame]
Due to copper length distances the telco could decide to shorten the length of the "local loop" between the Switch and the customer.
They have various options at their disposal:
1. Build a new switch that includes a small brick building.
2. Install a containerised exchange.
3. Install a remote exchange in a cabinet.
4. Install a mini-DSLAM.
5. Install a MSAN (the very latest addition to their toolbox).
Option 1 is obvious. It will include new optic fibre backhaul in the nearest local fibre ring. While this will always be the best option it is the most expensive and also requires the purchase of a property (land). Brand new telephone numbers will be allocated to all customers connecting to this new exchange.
Option 2 has been phased out and existing units are being replaced by options 3 and (soon) option 5.
Option 3 was popular as it was quicker to install and occupied very little physical space. All equipment would fit into a single metal cabinet mounted on a concrete plinth on a pavement. In most cases this remote unit was connected by optic fibre back to the nearest "big" exchange. Brand new telephone numbers will be allocated to all customers connecting to this new remote exchange.
Option 4 is very popular to increase broadband capacity. Instead of installing new exchanges or remote exchanges, a mini-DSLAM would be installed in a metal cabinet on a pavement or in a shopping centre, etc. and it would be connected to a "parent" exchange nearby. Each ADSL port on the mini-DSLAM will require a dedicated port on the DSLAM at the "parent" exchange. Numbering is done at the "parent" exchange and not at the remote unit. So, while it is a relatively quick fix, it is not ideal.
Option 5 is the latest and greatest currently being piloted in South Africa by Telkom. It is an "all-in-one" MSAN unit that is connected via optic fibre to the nearest optic fibre run. The MSAN does everything and does not need to be connected to the nearest "parent" or "big" exchange. Telkom will use these to provide 20Mbps services. Pilot projects are underway in Joburg, Pretoria, Cape Town and Durban.