Telecom confirms next generation network

Telecom today announced a $220 million project to switch every telephone line in the country to an internet protocol platform within seven years.

Telecom and Alcatel announced a joint venture programme to build the Voice Over internet Protocol (VOIP) network.

VOIP is the standard for allowing phone conversations to be carried via the internet. It will greatly reduce costs and should give customers cheaper calls and Telecom higher profits.

Telecom said the new voice technology would revolutionise New Zealand's telecommunications infrastructure and is the culmination of five years of planning.

The first residential customers will be on the new network by early 2007 and by 2012 the country's 1.7 million customer lines will have changed to the new platform.

Telecom sees the project as a critical milestone in a $1.4 billion transition to a system that will carry voice, data and video in a bundled service.

Telecom chief operating Officer Simon Moutter said the move would determine Telecom's technology direction for the next 10 years.

"This is really fundamental for the future of telecommunications in New Zealand. VOIP technology is critical to achieving the goal of integrated and converged services."

He said the new system had the potential to reduce costs for customers and put more control and flexibility in customers' hands.

- NZPA