Telstra inks IT contracts worth billions

17.11.2005
Telstra has inked more than A$5 billion (US$3.66 billion, as of Wednesday) in contracts as part of the massive revamp of its Internet protocol (IP) network and third generation (3G) mobile phone platform.

The telco has clinched a A$3.5 billion deal with France-based communications solutions provider Alcatel to help build Telstra's new IP network. Alcatel will be primarily responsible for design, integration, product supply and ongoing support of the telco's network.

As part of a strategic technology review announced yesterday, Telstra will reduce its 334 networks by up to 65 percent over the next five years and will collapse its three mobile networks into a single, 3G high-speed network under a three-year plan.

Chief operations officer, Greg Winn, said the telco has signed a deal worth more than A$1 billion with Cisco which will build Telstra's IP core, and Ericsson will roll out the national 3G platform.

"The Alcatel contract is in excess of A$3.5 billion; it's fair to say that the Ericsson contract is well north of A$1 billion and the Cisco contract is well north of A$1 billion," Winn said.

"These numbers can move a couple of hundred millions of dollars either way."