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Telstra names Alcatel, Cisco and Ericsson as key suppliers

IT Industry - Strategy

Telstra has chosen Alcatel, Cisco and Ericsson as the three key suppliers of major network initiatives announced today as part of its strategic review.

Telstra and Alcatel have signed an MOU covering Alcatel's role in Telstra's Network Transformation Project. This will migrate Telstra's voice and broadband access networks into a single IP-based infrastructure.

Alcatel's responsibilities will include network design and integration, product supply, deployment, maintenance and on-going support, in relation to broadband access, ethernet aggregation, fixed next generation voice and network integration.

Telstra has chosen Ericsson Australia as the vendor to develop its 3G city-to-country mobile network strategy, also under an MoU. Ericsson will provide a broad range of services including design, construction, support and maintenance services and equipment for its 3G core and radio access network infrastructure. Construction is expected to commence early in 2006.

Cisco Systems Australia Pty Ltd has been named Telstra's preferred vendor to upgrade its IP core network, also under an MoU.

Cisco will deliver a new IP core network to replace Telstra's existing Telstra Internet Direct (TID) and Routed Data Networks (RDN). It will be based on the Cisco CRS-1, Cisco's flagship carrier-grade router, announced last year after a mammoth four year $US500 million R&D program billed as "the culmination of the most ambitious project in the company's 20-year history." A single unit can have a throughput of 92tbs - equivalent to all the world's telephony traffic - and has been designed on the basis that it is likely to have a 20 year lifespan in carrier networks.

There are few serious players in this market: Cisco's arch rival Juniper was successful in winning AARNet's recent tender for core routers.