x
Optical/IP

Telstra Unveils Switch to IP

Australian incumbent carrier Telstra Corp. today unveiled an $8 billion "Network Transformation Project" to migrate to a single all-IP network, naming Alcatel (NYSE: ALA; Paris: CGEP:PA), Ericsson AB (Nasdaq: ERICY), and Cisco Systems Inc. (Nasdaq: CSCO) as its main vendor collaborators. (See Telstra Names NGN Vendors.)

Alcatel, already a key technology provider to Telstra, lands the lion's share of the fixed network spoils, with a five-year agreement worth an estimated $2.55 billion. It will provide: a range of access equipment, including IP DSLAMs, fiber-to-the-node (FTTN), and fiber-to-the-premises (FTTP) equipment to hook up Australia's 5 million-plus households with high speed connections; VOIP systems, including softswitch and media gateway technology; Ethernet aggregation equipment; and a range of integration, support, and maintenance services.

Alcatel has been working with Telstra on FTTH trials for more than a year. (See Telstra Uses Alcatel for FTTP.)

Cisco has been named as the core IP network equipment supplier, for which it will supply a number of CRS-1 routers. No value was given for Cisco's deal.

Ericsson, another long time Telstra supplier, is supplying the latest mobile network infrastructure, including WCDMA 3G base stations, including HSDPA (high speed downlink packet access) capabilities, core network technology, and a range of support and integration services. No value was given for its deal.

Telstra says it's in discussions with "several other vendors," who will be named soon. These other vendors are believed to include OSS vendors: Telstra plans to consolidate its back office systems in a $728 million overhaul over the next three to five years.

Alcatel spokeswoman Hilary Mine says Alcatel has "a head start" in its Telstra engagement thanks to its experience at U.S. carrier SBC Communications Inc. (NYSE: SBC), where it is the lead integrator for the RBOC's access network transformation. (See Mais Alors! Alcatel Bags $1.7B SBC Deal .)

She adds that the systems supplied are "IMS-ready", and that there was no demand from Telstra for any specific video capabilities.

Mine adds that the Telstra deal has a more significant services component than the SBC deal, and notes that Telstra is undergoing more of a total network transformation.

Alcatel expects to start recognizing revenues from the deal in the first half of 2006. Telstra is the latest national operator to announce its commitment to an all IP future, following the likes of BT Group plc (NYSE: BT; London: BTA), KPN Telecom NV (NYSE: KPN) in the Netherlands, and Norway's Telenor ASA (Nasdaq: TELN). (See BT Unveils 21CN Suppliers, KPN Lays Out IP Migration Plan, and Telenor to Unveil All IP Plan .)

— Ray Le Maistre, International News Editor, and Nicole Willing, Reporter, Light Reading

materialgirl 12/5/2012 | 2:54:04 AM
re: Telstra Unveils Switch to IP Wow. A CRS-1 win. This is the first real-sounding one I have noticed (the BT business sounded fishy from what I recall). It it finally a mature core router product? This is not a cut-down size is it?
IPBOY 12/5/2012 | 2:54:01 AM
re: Telstra Unveils Switch to IP Well you should be completely surprised and your initial assumptions that the CRS was not a mature product is completely true. The real reason as to why the CRS was chosen over the Juniper has nothing to do with the technical merits of the box and has everything to do with the current CEO of Telstra and the incompetent senior Telstra management. In-fact internal testing has clearly exposed the CRS weakness and no telco should be stupid enough to install a router with version one software running on it. The product is clearly immature and we have found enormous amount of bugs with the software.
go_ON 12/5/2012 | 2:54:00 AM
re: Telstra Unveils Switch to IP Thats vendor-slapping-rubbish. CRS-1 is good platform in terms of performance and availability. It has functionality gaps, but the architecture is solid, from my experience of testing it.

BTW Telstra are not the first - C&W also selected this a few months back.

Discalimer I do not work for Cisco nor do I work for an Operator who has tested the CRS-1.
desiEngineer 12/5/2012 | 2:53:55 AM
re: Telstra Unveils Switch to IP I heard Alcatel was responsible for designing Telstra's network. Is that true, and if so, did they test CRS?

-desi
chook0 12/5/2012 | 2:53:51 AM
re: Telstra Unveils Switch to IP Alcatel have strong design input into Telecom New Zealand's network but not Telstra's. They have some operational responsibility in Telstra, but Telstra maintain their own design capability.

Without getting into vendor slapping or speculating on the maturity of the CRS-1, the CRS-1/s in Telstra is/are being used to upgrade GSRs in parts of the network that are currently 100% Cisco. The decision was made without going to the market for competitive bids, so it is a win only in the weak sense.

--Chook

------------------------------------------------
I heard Alcatel was responsible for designing Telstra's network. Is that true, and if so, did they test CRS?
desiEngineer 12/5/2012 | 2:53:46 AM
re: Telstra Unveils Switch to IP Chook,

"Without getting into vendor slapping or speculating on the maturity of the CRS-1, the CRS-1/s in Telstra is/are being used to upgrade GSRs in parts of the network that are currently 100% Cisco."

But why not T640? I thought jnpr was already in the network.

-desi
gotman 12/5/2012 | 2:53:38 AM
re: Telstra Unveils Switch to IP I don't think Juniper could answer, why not the T640?... The CRS sales appear healthy, feature gap might be getting filled?
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE