Customers should reap benefits as savings passed on

Telecom's IP-based "next generation network", expected to be built with Alcatel and EDS over the next 12 months, will deliver bandwidth-intensive services with savings that in theory should be passed on to customers.

Possible services include:

fusqi Corporate networking. This is expected first, and involves creating a virtual private network (VPN) with a guaranteed quality of service for computer applications from financial applications such as SAP right down to desktop tools such as Microsoft Word.

IP Citrix - a particular "thin client" server application that enables Windows computer terminals to run standard PC software effectively.

ASP (application service provider) services - providing outside, centralised computing services to companies. Telecom already has ASP services available with its EDS and Microsoft partnership called esolutions.

Centrex-style multi-office IP telephony - office phones all over the country but apparently all on the same office network.

Video on demand - bringing videos down your telephone lines to your television to watch whenever you want.

Home IP telephony - having any number of phones at home that can work as extensions or as individual phone lines.