Telstra delivers nextgeneration, high speed broadband to customers

Company background
Telstra Corporation Limited (ASX:TLS) is Australias leading telecommunications and information services company, with one of the best-known brands in the country. Telstra is the only true media communications company in Australia that can provide customers with a truly integrated telecommunications experience across fixed line, mobile, broadband (BigPond), information, transaction and search (Sensis) and pay TV (FOXTEL) services. Telstra provides more than 9.4 million Australian fixed line and more than 9.4 million mobile services. Telstras international businesses include: CSL New World Mobility Group, one of Hong Kongs leading mobile operators; TelstraClear, the second-largest full service carrier in New Zealand; Reach, a provider of global connectivity and international voice and satellite services; and SouFun Holdings, a leading real estate and furnishings website in China. By using an integrated suite of network and media assets, Telstra is creating a world of 1-click, 1-touch, 1-command, any-screen solutions that are integrated, operate in real time, and are simple and easy to use. Telstra has evolved from a traditional telecommunications company into a holistic, full service media, advertising and communications company. The company is meeting growing customer demand for speed, content and delivery by focusing on network, service and operational transformation, and replacing legacy networks and systems with IP-based infrastructure capable of running advanced multimedia applications.

First, Telstra wanted to deploy a strategic rollout of a new distributed HFC network architecture across its HFC footprint in Melbourne and Sydney. This would support growth in the subscriber base through improved scalability, more efficient use of network capacity, and a better broadband experience for customers through improved redundancy and increased network capacity. Second, Telstra wanted to extend its position in the broadband market and prepare for the next generation of broadband services by rolling out new cable broadband services on its network. The first step in this strategy was to deploy a high-speed cable network to support the demonstration of future Internet Protocol (IP)-based video and high-speed Internet products and services in a trial. According to an Accenture survey of 260 CIOs, Telstra is on the right track. The research found that the best-performing companies showed highly developed capabilities in IT execution and consistently invested in IT innovation. Telstras overall objective was to extend its position of market leadership by providing one of Australias fastest consumer cable broadband services. The launch of a service providing up to 30 megabits per second (Mbps) for broadband users in Melbourne and Sydney would provide Telstra customers with the best possible services. The cable broadband rollout would also force competitors to make similar investments in improving their broadband network services, which benefits Australian consumers and the economy. To deliver these broadband services, Telstra needed access to industry experience and skilled resources to help evaluate possible vendors and manage the rollout process. The provider selected by Telstra would work closely with Telstra BigPond Products and Telstra Marketing to launch these innovative, next-generation cable broadband services.

aspects of network commissioning and testing. As a subset of the program, Accenture investigated a full-scale implementation of the 256/16 QAM (quadrature amplitude modulation) upgrade to enable more capacity. Accenture also led the feasibility testing, technical trial and project deployment of this upgrade in Melbourne and Sydney. The Accenture team worked closely with the Telstra Network & Technology team to deliver this project. As a direct outcome of this initiative, Telstra launched Cable 30 in September 2007, which, at the time, was the fastest cable broadband service offered in Melbourne and Sydney. Telstra also teamed with Accenture in early 2006 to investigate the Data Over Cable Service Interface Specification (DOCSIS) 3.0, the latest standard that permits the adoption of high-speed data transfer over the HFC. Telstra subsequently asked Accenture to drive its initiative in this area, which included completing a feasibility study, an assessment of vendors, a lab trial and a friendly trial in Melbourne and Sydney. Accenture contributed to all aspects of a very successful 75Mbps broadband trial in the production network. The Accenture team also worked closely with the Telstra Network & Technology stakeholders to deliver: A high-level business case for offering business services over the existing HFC network. Increased and in-depth understanding of the true capabilities of the HFC plant through an extensive feasibility analysis followed by recommendations of key HFC plant upgrade initiatives to pursue. Impact assessment and proof-of-concept demonstration of static quality of service (QoS) and the Packet Cable Multimedia (PCMM).

Business challenge
Broadband services are increasingly becoming a commodity, with the consumer wanting more for less. Broadband penetration and speed continues to be a strong area of focus for consumers and businesses across Australia. The challenge for Telstra was to enable cost savings, while providing a faster, more reliable cable broadband service, enhanced for the next generation of broadband services. Telstra made a strategic decision to implement next-generation capabilities on its national Hybrid Fiber-Coaxial (HFC) network, in a move that would facilitate the growth of its cable broadband business. These capabilities had to be implemented quickly and cost-effectively. To do this, Telstra had to meet two key objectives:

How Accenture helped

Initially, Accenture was asked to provide expertise and guidance on next-generation cable broadband technologies, make recommendations on next steps, and support the planning of an aggressive rollout of a new distributed, scalable and redundant network architecture. Accenture project managed the accelerated deployment of over 180 HFC network exchanges in Melbourne and Sydney in a 12-month program. Accenture was also responsible for quality assurance and

High performance delivered

This project enables Telstra to deliver the utmost in telecommunications services. It delivers one of Australias fastest consumer broadband services, with up to 30Mbps available to more than 1.8 million Telstra customers in Melbourne and Sydney. With help from Accenture, the company is now at the forefront of consumer awareness and technical capability.

Telstra customers can now experience the benefits of a wealth of entertainment content via their computers and broadband connections. The project involved upgrading Telstras HFC networks in Melbourne and Sydney from a maximum speed of 17Mbps to 30Mbpsthe fastest speed offered by any broadband provider in Australia and a throughput rate comparable to leading markets worldwide. Upload speeds were increased four-fold from 256Kbps to 1Mbps. The speed increase was achieved by upgrading Telstra exchanges in Melbourne and Sydney. Telstra and Accenture installed cable routers at each exchange, which enabled faster broadband speeds by carrying data traffic closer to customers premises before transporting it via radio frequency signals on the HFC network. With each exchange upgrade requiring four weeks of work, the project required about 200 technical staff from Telstra, Accenture and other providers working together over a year to complete the task. The project was completed ahead of time and under budget, with the new network turned on in September 2007. A key part of the program was to finetune the HFC network by deploying a new distributed and more scalable architecture within Telstras cable network, known as BMS R1.1. This work was project managed by Accenture and led to higher data speeds being achieved over the HFC network. Telstra and Accenture also demonstrated the use of DOCSIS 3.0, which, through channel bonding technology, makes it possible to deliver cable broadband services with download speeds in excess of 50Mbps.

Super high-speed broadband connections, along with quality of service capabilities, will enable effective delivery of rich-media content such as high-definition video to consumers. This initiative included a friendly trial that showed it would be possible to deliver data at a phenomenal 75Mbps over Telstras cable network.

Telstra business benefits

Working with Accenture, Telstra: Delivered one of the fastest retail broadband services available in Melbourne and Sydney. Improved customer loyalty due to a superior product offering and the prospect of dealing with the market leader. Improved brand perception in terms of innovation and market leadership. Reduced operational costs due to the improved modularity and scalability of the cable network. Telstras investment in innovative information technology has improved its market position, resulted in better customer experience and put Telstra on the road to high performance.

Benefits
Telecommunications represents the digital nervous system for any modern economy, enabling people to talk, exchange data, access centralized business applications and interact with the Internet. The expansion and modernization of Telstras cable network extends these capabilities for the benefit of all Australians and also introduces new capabilities previously unavailable in Australia. Speaking at the time of the launch of the 30Mbps cable network, former Telstra Group Managing Director, Media, Justin Milne said, This is the next big thing for the digital home. Higher speeds turbo charge Web surfing, emailing and downloading, but they also allow families with several PCs and laptops to be connected simultaneously so everyone can get a faster connection than before. At 30Mbps, customers can download a Hollywood blockbuster from Telstras BigPond Movies serviceor elsewherein less than five minutes or even stream it instantly. They can also use the faster upload speeds to send large emails, upload data to websites, share files and communicate using voice over IP or Web camera applications.

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About Accenture Accenture is a global management consulting, technology services and outsourcing company, with approximately 211,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the worlds most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$21.6 billion for the fiscal year ended Aug. 31, 2010. Its home page is www.accenture.com.

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