NZ Telecom Bets Big on IP

The telecom bubble of 1990s had far reaching effects, and on of the companies affected deeply was New Zealand Telecom, which saw its shares plunge, and profits evaporate. Instead of licking its wounds and hiding under the rock, the company decided to cut its fat, and bet big on an all IP network, which makes it one of the handful of incumbents to ditch the aging PSTN infrastructure in favor of IP. The total cost of this network upgrade – $1 billion. A lot less than what British Telecom is spending on its 21Cn Network, but still a sizable sum of money. “Yes, there is a degree of risk about it. But some things are obvious – there’ll be something in the marriage of entertainment and communications, for example,” says one
NZ Telecom executive. Their objective: mass personalize the phone network by offering services that fit consumer lifestyles and not what the phone company wants them to buy. Enlightened telecom executives … yeah there are some of them around in the far corners of the world.

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