Alcatel joins €2.18 billion project

has selected

as one of its key strategic partners for the operator's IP network transformation project.

As part of the proposed five-year agreement worth €2.18 billion ($2.55 billion), Alcatel will provide Telstra with comprehensive network solutions and end-to-end integration capabilities. Alcatel's responsibilities include network design and integration, product supply, deployment, maintenance and on-going support.

Telstra and Alcatel have entered into a Memorandum of Understanding under which they will negotiate formal agreements to reflect their strategic partnership.

Telstra's Network Transformation Project will migrate the Australian carrier's voice and broadband access networks into a single IP-based infrastructure for the cost-effective delivery of services to Telstra's customers.