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A Next Generation IP network means that Telecom will be able to:

• Combine voice and data on the same line

• Deliver multiple services with ease

• Roll out new services much faster and more cost-effectively

• Continue to provide integrated solutions for voice, video and data

• Simplify its network and achieve substantial efficiencies

For customers it means:

• End-to-end service management to the desktop

• Greater data speeds for many customers

• A flexible ‘plug and play’ IT and T environment

• Lower overall costs for IT and T services

Telecom General Manager for Network Investment, Rhoda Holmes, said the migration meant taking the huge leap from the digital world to an Internet Protocol world and to do this Telecom wanted to partner with one equipment provider to manage the network technology development and integration.

We currently have a highly complex network with a mix of both legacy technologies and embryonic next generation technologies sourced from a variety of vendors. Working primarily with a single provider is the best way that migration to a simplified IP network can be delivered economically and effectively," she said.

Mrs Holmes outlined that Alcatel will design and supply the operational support systems (OSS) for the network. The integration of OSS with Telecom's business systems is expected to be performed by EDS, Telecom's supplier of information technology and services.

"We believe the complementary strengths of all three organisations will ensure the success of Telecom's Next Generation Network in delivering what our customers tell us they want," she said.

Mrs Holmes said the model was based on partnering rather than outsourcing, "In this model we will use each other’s skills to do what neither of us would be able to do by ourselves.

Ron Spithill, President of Alcatel Asia Pacific, said: This announcement is a very positive endorsement of the success of Alcatel in New Zealand and Australia and of the core competencies of the company globally."

"Alcatel has a unique and comprehensive portfolio of network solutions, a substantial global and local pool of expertise in implementing end-to-end solutions and is the ‘architect’ uniquely placed to enable Telecom to transform its business. This partnership supports Alcatel’s strategy to be a leader in the NGN space and increases our brand reputation as an enabler of change and sustainable growth. Spithill added.