Australian telco Telstra and Microsoft today announced an expansion of their strategic partnership. Telstra is purchasing 21,000 Copilot for Microsoft 365 licenses for its employees, and Microsoft has now signed contracts for the first routes on Telstra's Intercity Fibre Network project, which is currently under construction. By combining Microsoft's AI technology with Telstra's Intercity Fibre Network project, the two companies aim to accelerate digital transformation and develop Australia's AI ecosystem, the joint statement said on Monday.
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Major AI Deployment in Australia
Telstra's deployment of Copilot is the largest implementation of the generative AI service in Australia and one of the largest among telecommunications companies globally, Microsoft said.
Intercity Fibre Network Expansion
Microsoft announced that it has selected Telstra as a strategic partner to extend its AI infrastructure in Australia to meet the growing demand for AI. Microsoft had previously been named an anchor tenant of Telstra's Intercity Fibre Network when the upgrade was first announced.
Commenting on the expansion of the partnership, Telstra said: "As we move into this new era of AI, connectivity has never been more fundamental. There's so much to be excited about when it comes to AI – including generative AI tools like Copilot – but none of it works without the foundational layer of secure, reliable connectivity."
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Enhancing Australia's AI Ecosystem
"Our intercity fibre network routes connect Australia to the world, seamlessly transitioning terrestrial fibre to our extensive international subsea fibre network. This partnership, which involves building high-capacity intercity fibre routes for Microsoft, further enables Microsoft to boost its capacity and achieve end-to-end connectivity across key telecommunications routes in Australia and the Asia-Pacific region," added Telstra.
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Approximately 1,800 kilometres of fibre has already been laid across the country. The expanded partnership builds on the strategic five-year agreement that Telstra and Microsoft announced in July 2022 to support Australia's digital growth, the official release said.
