KEY POINTS:
Telecom, whose share prices is bobbing around near a 15-year low, said today it plans to spend $130 million on new internet Protocol (IP) network.
It has selected Alcatel-Lucent to build the network.
The nationwide network will bring voice, internet and mobile telephony services together onto one integrated technology platform.
The contract runs through to December 2009, by which time Telecom expects to be able to launch the first "proof of concept" products on the new network.
"Building this next generation network infrastructure is yet another example of the massive programme of transformation currently under way at Telecom," said chief transformation officer Frank Mount.
The new investment would complement other significant programmes of work including, fibre to the node, the mobile phone network upgrade, the next generation Telecom retail transformation and operational separation, he said.
The development of an all IP network is also a component of Telecom's undertakings on operational separation, he said.
Telecom shares were up 2 cents at $3.30 today.
- NZPA
