Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Telecom & Alcatel Negotiate Strategic Relationship

Telecom And Alcatel Move Towards Strategic Relationship

Telecom and Alcatel have entered negotiations to form a strategic relationship for the development of the Telecom Group’s fixed line networks in New Zealand and Australia using next generation Internet Protocol (IP) technologies.

Telecom’s current core network meets the world standard of being 99.999% reliable. Telecom intends to maintain this level of reliability while moving, over time, to a new IP network that will open a wide range of new services available to customers using just one network connection.

Group General Manager Network Simon Moutter said Telecom foresaw substantial benefits from a strategic relationship with a prime vendor like Alcatel.

“We want to cut complexity and cost for Telecom by working predominantly with Alcatel and EDS, our major supplier of information technology and services,” Mr Moutter said.

Negotiations with Alcatel are expected to continue for several months before a final agreement is reached.

Mr Moutter said Telecom would migrate its networks to next generation technologies over time. “Working with one prime vendor will help us achieve this using the best technologies for our requirements and at a pace consistent with market demand for new services. The benefits will also come from a lower build cost than would otherwise be incurred,” said Mr Moutter.

Mr Moutter also said Telecom expected superior revenue growth and cost reductions by working at the strategic level with a prime vendor and with EDS, and by aligning the financial incentives of all three companies.

Telecom has been exploring for some time the gains that could be secured by having a prime vendor to organise supply of its next generation network. In May 2001, a shortlist of NEC, Lucent and Alcatel was announced.

Mr Moutter said Alcatel had been selected for final negotiations because it offered a partnering proposal that best fitted Telecom’s requirements.

“Alcatel can meet a broad range of our service provider needs including network capabilities, operational support systems, project management, and marketing support,” Mr Moutter said. “Its strength as a well regarded global brand has also made Alcatel attractive.”

He said the other two short-listed vendors were also strong candidates. NEC would continue to have a major role supporting the current generation of fixed line networks and Telecom’s migration to the next generation.

Alcatel spokesperson Robyn Bern said the company was thrilled to have been selected for the negotiations and was looking forward to working more closely with Telecom.

“We are sure Alcatel can bring to this relationship all that Telecom is after. We have worked closely to develop the overall strategy to get to this stage and it will be great to get down to the finer details,” she said.

Proposals for the strategic relationship encompass the Telecom Group’s core fixed line networks only. The future provision of mobile access network technology and of customer premises equipment will not be included in negotiations with Alcatel.


© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


  • Bill Bennett on Tech