Telstra has moved to end mounting speculation that its prestigious DMO (Data Mode of Operations) project is becoming a farce by naming its preferred suppliers last week.
Nortel Networks will provide networking equipment for Telstra's network core, including IP, Frame Relay, ATM requirements, in addition to the Telstra Access Server solution technologies and systems integration.
Lucent stands to reap significant rewards as the dominant dial gateway and signalling gateway provider, claiming the products represent over 50 per cent of the total equipment cost.
The move is a blow to Cisco and Alcatel's joint bid to secure the whole deal. The duo has walked away with responsibility for network management and voice over IP services.
The DMO is billed as Telstra's most significant technology project into the new millennium, taking the carrier into the world of converged IP-based voice and data networks.
Telstra reports it will spend between $400 and $600 million over five years on the rollout, redirecting expenditure from within the "existing capital envelope".
The direct nature of the DMO deal, however, leaves few pickings for the channel.
According to a Nortel spokesperson: "With the portion that we have won, we don't need any partners," he said.