Telecom New Zealand has awarded Alcatel-Lucent a contract to upgrade its core network to a converged 100 gigabits per second optical transport network (OTN).
A spokesperson for Telecom NZ told iTnews that the core fibre network runs from Kerikeri in the Far North to Invercargill on the south island at an overall length of 9000 kilometres.
"The [Alcatel-Lucent] optical transport network will be built besides the existing system which we will continue to use," the spokesperson said.
Telecom NZ's chief technology officer David Havercroft said the investment is about getting more bandwith out of the same amount of fibre, ahead of the country's next-generation FTTP network, the Ultra-Fast Broadband project. He did not disclose how much the OTN cost Telecom NZ.
Havercroft expected the new technology to drive costs down for the telco.
Asked if the cost savings from the OTN would be passed onto Telecom's retail and wholesale customers, the spokesperson said: "We are always focused on keeping our prices as low as we possibly can, as we understand how vital our services are for New Zealanders.
"However, to keep New Zealand ahead of the technological wave we must continue to invest in the network — with this investment being a good example — and prices need to reflect this".