Telecom announces USD203 million IP upgrade

30 Aug 2005

New Zealand’s incumbent fixed line operator Telecom is to spend NZD220 million (USD203 million) to upgrade its entire switching network to an internet protocol (IP) platform by 2012. In a joint venture announcement with Alcatel the company said it is looking to build a voice-over-internet protocol (VoIP) network for all residential users, revolutionising the country’s telecoms infrastructure. The first customers will be switched to the new platform in early 2007 and by 2012 all of its 1.7 million customer lines will have been upgraded to the IP network. Telecom sees the initiative as key to its plans to migrate to a system capable of offering bundled voice, data and video services. The company’s chief operating officer Simon Moutter said the move was ‘fundamental for the future of telecommunications in New Zealand. VoIP technology is critical to achieving the goal of integrated and converged services.’

New Zealand, Spark New Zealand Group