Telstra announced in November it would build a next-generation network, with Tellabs supplying the edge-routing component. Additional equipment is being supplied by Alcatel and Cisco.
"We signed a frame contract with Telstra at the end of last year, and then they started placing orders against that contract in the first quarter of this year," Tellabs' senior vice president of Asia-Pacific sales and customer service, John Cole, told ZDNet Australia in a phone interview this morning.
Telstra is using Tellabs' MultiservicePLuS solution which the vendor says "will allow Telstra to deliver a wider range of voice, video and data services over a converged network infrastructure."
Tellabs 8800 multi-service router will be supplied. Although the contract does not specify the number of routers required, Cole thinks an opportunity exists for around 300 of Tellabs' boxes to end up in Telstra's network over the next two to three years.
The routers will allow Telstra to interface next-generation services with its existing ATM network.
"There are a number of different applications for the 8800 for Telstra, I think, but right now, the orders we're receiving are for an ATM cap and grow application," said Cole.
"Really a project to start capping their ATM network so they could provision different services off of their same boxes that could support their ATM network," he added.
Cole claimed the 8800 was one of the few products in its market segment that offered support for legacy services like ATM, frame relay and TDM as well as the latest Internet Protocol and ethernet technologies.
The executive declined to comment on the value of the deal, saying Tellabs had signed a non-disclosure agreement with Telstra.
Tellabs has retained the services of local contractor Broadcast Services Australia (BSA), which does a lot of business with Telstra generally.
"We have a local partner here that we're using to do a lot of the logistics work for the equipment that gets shipped in, and the design and construction work, so a lot of the field deployment of the technology." said Cole. "We're working with a company called BSA."
Cole said the details of Tellabs' service and support agreement with Telstra were "still being worked out."
The Telstra work has resulted in Tellabs ramping up its presence in Australia, with seven full-time staff on deck in Melbourne and hirings taking place. The vendor is also flying in experts from around the world to make sure the Telstra deal goes smoothly, and Cole's team in Singapore is pitching in.
Tellabs has had a presence in Australia for some 12 years, with its hardware sold through third-party suppliers. However Cole sees wider opportunities with other carriers in the country.
"We're here, building up a team. The focus is clearly on supporting Telstra but over time, we're working on some business development opportunities with some of the other carriers here," he said.