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Telestra In $1.5 Billion Network Upgrade
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The Australian |
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Telestra management will in coming months
present to the board a blueprint for a $1.5 billion upgrade of the company's
core residential voice and data network.
The project – known as Broadband Multi-Services – will be Telstra's biggest
residential upgrade for a decade and enable a suite of new high-speed
consumer services.
It will include a network platform to serve technologies such as wireless
broadband, faster ADSL (broadband over copper wires), cable, internet-based
voice services and video offerings.
The project will represent the most significant overhaul of Telstra's
residential network since it replaced its analogue exchanges with digital
equipment in the early 1990s.
Telstra Technology managing director Andrew Johnson said high-speed data and
internet connections were "going to be ubiquitous – this is going to be the
main way we relate to our customers".
The BMS project consists of three parts: A core internet protocol network
that would see all residential services – the so-called triple play of
voice, video and high-speed internet - offered on one platform for the first
time; applications, such as video and voice over IP; and operations and
maintenance. The cost could be as much as $1.5 billion.
"If you look at the scale of our operation, there are 7.5 million houses,
there are 10 to 11 million fixed lines. Certainly, when you start talking
those numbers, you can get up to $1.5 billion. I wouldn't say that's
unrealistic," Mr Johnson said.
But it was unclear whether the project would squeeze into Telstra's annual
domestic capital expenditure budget of about $3.2 billion. "We are working
that through but I would like to see it be able to live within our existing
capital envelope," he said.
"The movement from narrowband (traditional voice and dial-up internet) to
broadband is part of natural evolution in our business. But the caveat that
I would put is take-up.
"The first year in broadband – about five years ago – we sold 80,000
services. In November, I sold 80,000 services in one month. If we get
dramatically fast market take-up, we may invest money faster than we
expected to.
"BMS is an integral part of providing a better high capability broadband
services. The high-speed highway is only part of it. BMS is all the control
systems that allow this to operate and then the applications platforms. We
are putting in the infrastructure capability that allows new services to
follow."
Telstra has asked its equipment suppliers to make their submissions for the
project by Friday after issuing a "request for information" last month.
"Our aim would be to get the business case signed off by the end of this
financial year. Assuming we go ahead – and I believe we will – we are
envisaging a five-year delivery program for the majority of the changes," Mr
Johnson said.
Companies which have been working on the RFI include Telstra's broadband
suppliers Alcatel and NEC, as well as Cisco Systems, Ericsson, Juniper,
Lucent Technologies, Marconi, Nortel Networks and Siemens.
Telstra's project mirrors a number of similar network upgrades which have
been given the green light by large offshore telecommunications companies
over the past 12-18 months. The most advanced of these are the former
incumbent British Telecom and Verizon and SBC in the US. |
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