11 Feb 2013

No concerns held by Telecom about Alcatel contract

7:10 am on 11 February 2013

Telecom says it has no concerns about awarding Alcatel Lucent a three year contract to roll out a major nationwide upgrade of its fibre network.

The upgrade will increase the capacity of Telecom's network to carry more data.

Alcatel Lucent built Telecom's XT network, which resulted in several outages in 2011 and resulted in compensation payments worth millions of dollars.

Telecom chief technology officer David Havercroft said Alcatel was awarded the contract on merit, and valuable lessons have been learnt from its XT experience.

He said Telecom has a good plan in place with Alcatel Lucent and it's pretty confident that when the upgrade occurs it will not be a problem in terms of disruption to customers.

Mr Havercroft said the upgrade is needed to cope with the huge growth in data usage by customers.

Neither Telecom nor Alcatel will say how much the deal is worth.