Yes, VDSL2.

Can you explain what "3km" refers to?

In your first post you gave the line length to the exchange. What you need to know is the line length to the cabinet.

The line length to the cabinet from the house is 3km and the length to the exchange underground is 2km, resulting in a 58db line attenuation (downstream),which isn't great I know!.

At 3k, little or no joy, I'm afraid.

What no chance of fibre at all?

He means that at that distance from the cabinet you won't see much, if any, benefit.

will it be faster than the 1-2mb we recieve now?

VDSL2 performs much the same as ADSL2+ at those distances.

we only have adsl max at our exchange, it's frustrating how slow it is!
We should have better broadband than this in 2013! We only receive 1-2.5mb max
How would we be able to have better broadband without using satellites?

Pay for FTTP on demand once fully rolled out
or move
or pay someone else to roll out fixed wireless or similar in the area

Almost certainly not, no. I think service tends to run out at around 2km, possibly up to 2.5km

The VDSL2 used in the cabinets, in theory, drops to the same speed as ADSL2+ at longer distances. By that statement, most people focus on the downstream speeds.

However, the way things have been set up, it just doesn't happen in practice:

1) The very lowest frequencies, that overlap ADSL and ADSL2+ from the exchange, are deliberately crippled in the cabinet - the "PSD mask" reduces the transmit power of those frequencies (as transmitted by the cabinet) to ensure that they don't interfere with signals from the exchange.

As a consequence, you can't actually get a better speed from the cabinet than you can from the exchange, once you've gone far enough away from the cabinet to be left with those frequencies alone.

2) The limiting factor, at the longest distances, seems to be the upstream speed. You run out of connectivity here first, before you run out downstream.

I'm not sure why this is. Power shouldn't be an issue here.

Anyway, there have been a few reports of speeds in the 1.6km - 2km region where they got 18Mbps down and 1.2Mbps up - although those were probably "early adopter" speeds without much crosstalk present.