Telstra Unveils Network Revolution; Selects Lucent, Nortel, Alcatel & Cisco For Phase I of Its Next Generation Network For The New Data Paradigm - Company Business and Marketing

Cambridge Telcom Report, July 12, 1999

Telstra Tuesday revealed a major development in its network technology strategy, designed to meet customer demands for Internet and data services and further reinforcing its position as a premier, next generation communications company.

Telstra has announced the first phase of its new generation infrastructure for the data paradigm.

These developments, including the selection of suppliers for Telstra's core data network and network management systems are the first outcomes from a project named the "Data Mode of Operation" (DMO).

This project was initially established to consolidate Telstra's multiple data and Internet based networks and supporting systems into a single, new generation low cost network, supported by an enhanced service managed capability -- to meet the explosive growth in data and Internet products.

The project identified the major business drivers in the data environment and the changing skills that Telstra will require to operate in the future.

Dr. Ziggy Switkowski, Telstra's Chief Executive Officer said Tuesday that these decisions are a significant step in Telstra's continuing transition to being a globally significant full service, 21st century communications company.

"Our Data Mode of Operation is a blueprint for a radically different marketplace based on data and the Internet. We have sought to optimize our choice of technologies to provide the best service at the lowest cost. Telstra is driving Australia's technology future," he said.

Gerry Moriarty, Telstra's Group Managing Director, Network and Technology Group and responsible for the DMO project, said Telstra has taken a leadership position in identifying the next generation network and systems infrastructure necessary to operate in this rapidly changing environment.

"The technology that Telstra has selected today will not only meet the high growth in data traffic on the network from existing products now, but it will also provide new capabilities to support products that are on the horizon or not even dreamt of yet.

"Telstra's DMO goal when fully realized will provide a communications capability that will mean customers are able to reach anybody or anything when, where and how they choose, effortlessly," he said.

Moriarty announced Tuesday the partners Telstra has selected to progress its first vital stage of the new generation DMO infrastructure.

"We challenged the best technology companies in the world to show how they could help Telstra realize its DMO vision through a very competitive selection process. We have chosen suppliers that Telstra has judged to be 'best in class' for each major component of the new generation DMO network and that have shown an ongoing development program to maintain that position," he said.

Data Mode of Operation contracts for the core network infrastructure will be awarded to:

o Nortel Networks to provide the core network, including Internet Protocol (IP) network, Frame Relay, ATM data network, and the Telstra Access Server solution technologies and systems integration;

o Alcatel/Cisco Systems to supply Voice on IP technology;

o Alcatel to provide the next generation Network Management solutions;

o Lucent Technologies to provide the dial gateway and associated signaling gateway and extend the existing Dial IP reach.

Further announcements will be made throughout the year as Telstra selects partners for the deployment of broadband access and enhanced services management.

Telstra Corporation Limited is the leading full service telecommunications carrier in Australia and the Asia Pacific region. Telstra has annual revenues of A$17 billion (US$11 billion), 60,000 staff worldwide and a presence in over 30 countries. The company has access to some 230 countries and provides multinational customers with the expert advice on networking in the Asia Pacific region.

Telstra offers consumers and businesses a broad portfolio of services including long distance, wireless, local, messaging, Internet services, information services, call center services, outsourcing, and all manner of advanced global telecommunications services. Additional information on Telstra and its services is available by calling 1-800-799-6283 or viewing Telstra on the World Wide Web at http://www.telstra.com.au.