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telstra_successstory.pages_ver3 (Page 1)
Page 1
Success Story:
Telstra
Telstra Delivers Next-Generation Internet
Services With Nortel Networks Shasta 5000
Broadband Service Node (BSN).
`Telstra's Data Mode of
Operation (DMO) project,
a 10-year program designed
to manage the shift from
existing circuit-switched
architecture towards
Internet-style packet
networks, is one of the
most closely watched telco
infrastructure overhauls
in the world'.
The Australian, 29 February
2000.
Telstra - Making the Data Connection
The Internet phenomenon, global communication, and new technology are
moving at the speed of light. In Australia, Telstra is the leading telecommuni-
cations and Internet Service Provider (ISP), setting the scene for how the
electronic marketplace will look in the new era.
Telstra's move to data traffic market domination from conventional circuit
switching creates new expectations of subscriber service, customer access and
control, and presents a significant challenge to the existing systems and busi-
ness models of telecommunications service providers throughout the world.
First to meet mass-market expectations and explosive customer demand,
Telstra is implementing an enhanced Internet Protocol (IP) packet-based
architecture, which surpasses the world's best practice.
As an integral part of the business model, Telstra announced that it had
selected the Nortel Networks Shasta 5000 Broadband Services Node (BSN)
as its IPSN platform. The Shasta 5000 BSN was awarded best-in-class by
addressing all of Telstra's selection criteria and is now a cornerstone of Telstra's
DMO network evolution ­ logically aggregating many thousands of customer
IP sessions from Telstra's broadband and dial access services.
A Powerful Tool
With the advent of mass market broadband, the Nortel Networks Shasta 5000
BSN is the vehicle to increase Telstra's competitive advantage. It makes the
transition from a simple connectivity-based business model, (Broadband RAS),
to a more profitable, network-based, flexible model.
Telstra has begun the new millennium with a core communications infrastruc-
ture that has flexibility, robustness and capacity to support the huge band-
width demand of digital convergence through the Shasta 5000 BSN. As the
next phase of its new generation infrastructure for the data paradigm, Telstra
and Nortel Networks are in prime position to determine the skill base for the
new era.

Page 2
"We chose Nortel Networks as a
partner to compete in the IP world
because of their proven track
record with us in wireless, data
and telephony solutions, and their
leading carrier-grade strength in IP
networking and Internet services
portfolio. This projects signals a
transition to Telstra being a global-
ly significant, full-service, 21st cen-
tury Company with a converged IP
core network integrating telepho-
ny, data, Internet and multimedia
services to our customers."
- Gerry Moriarty, Group Managing
Director, Infostructure Services
and Wholesale
Leading the IP Revolution
IP-optimised network architectures and services expand the opportunities
for Telstra's subscribers to enjoy innovative and value-added, enhanced
IP services. Telstra's Data Mode of Operation (DMO) project will equip
the Australian marketplace with a platform of Internet products and
services. This platform is the conduit through which opportunities pre-
sented by the `Internet Revolution' can be thoroughly and imaginatively
explored, by both business and consumer customers. As the premier
provider of information services in Australia, Telstra's DMO undertaking
is fundamental to the nation's continued prosperity in the burgeoning
knowledge age.
Specifically, the DMO program combines Telstra's core telephony net-
work with the Internet and institutes a next-generation infrastructure for
the data paradigm - conditioning Telstra's network and business for a
world where IP-based data traffic far exceeds voice.
Telstra's Data Mode of Operation (DMO) and Nortel Networks
Having established the DMO initiative to consolidate its multiple data
and Internet-based networks into a single, next generation low cost net-
work, supported by an enhanced service managed capability, Telstra
called for vendor proposals in 1998. Nortel Networks, already a key part-
ner with Telstra in their wireless, intelligent voice and ATM/frame relay
services, worked throughout the Request For Proposal process, to develop
shared vision for the profitable delivery of `anytime, anywhere, anyhow'
IP services.
The IPSN concept allows Telstra to offer Internet and other IP services
tailored to their customer's needs regardless of how the customer con-
nects to the network. Through IPSN, Telstra can now also offer IP cus-
tomers a single logical aggregation point, and all-important service trans-
parency for all last mile data access technologies: leased line, dial, ISDN,
frame relay, xDSL, metro ethernet, cable and wireless.
The Subscriber Edge
The Subscriber Edge is the new strategic high ground where Telstra will
meet customer needs that range beyond just straightforward connectivity.
The Subscriber Edge is significant in being the only point in the IP net-
work where awareness of IP subscriber identities allows Telstra to manage
subscriber traffic and apply custom services. The Subscriber Edge is
where relationships between Telstra and its customers are built, and is a
critical determinant of customer loyalty.

Page 3
Shasta 5000 BSN Features
* Supports more than 64,000
simultaneous subscribers with
full aggregation, firewalling,
traffic management and VPN
(256,000 per 7' rack)
* Up to 28 dedicated hardware
encryption engines for DES56
and 3DES VPN security and
packet compression
* Built for NEBS Level 3 compliance
General Characteristics
* 14 slots at 622 Mbps or
1.2 Gbps operation
* Logical midplane for
non-stop operation
* All modules capable of
hot-swap and redundancy
* Distributed DC entry (AC optional)
* 4 systems per 7' telco rack
Telstra's six key requirements of the IPSN platform were:
!
An ability to scale up to hundreds of thousands of subscriber
sessions in a single chassis
!
Carrier-class robustness
!
Straightforward provisioning of subscribers and services
!
Support for wholesaling
!
Ready integration into existing billing and OSS
(Operation Support Systems)
!
Seamless migration path to `revenue-generating' Internet
and IP services
Telstra announced that it had selected the Nortel Networks Shasta 5000
Broadband Services Node (BSN) as its IPSN platform. The Shasta 5000
BSN was judged best-in-class by addressing all of Telstra's selection crite-
ria and is now a cornerstone of Telstra's DMO network evolution ­ logi-
cally aggregating many thousands of customer IP sessions from Telstra's
broadband and dial access services.
Nick Avakian, Vice President of the Telstra account at Nortel Networks
said "Against fierce competition and extensive evaluation, we have suc-
cessfully demonstrated that Nortel Networks has the networking prod-
ucts and expertise to support Telstra in delivering next-generation
Internet services in Australia and winning in the Internet economy."
Revenue Generating Services
The Nortel Networks Shasta 5000 BSN is an enabler of the IPSN
initiative, and by fulfilling a strategic role in Telstra's DMO, enables
tailored and value-added IP services to subscribers regardless of connec-
tion methods.
"With Nortel Networks, Telstra is delivering high-speed Internet access
and new customized, value-added Internet services that our customers
demand and expect," said Stuart Lee, Managing Director, Data and IP
products, Telstra. "By offering new, enhanced services such as Internet
Protocol Virtual Private Networks (IP-VPNs) for our business customers,
and broadband access with firewall protection for our residential markets,
we will lead in Internet applications and customized services with the
Shasta 5000 BSN. Like Telstra, Nortel Networks understands the value
of meeting customer needs through personalized services."

Page 4
United States
Nortel Networks
4001 E. Chapel Hill-
Nelson Highway
P.O. Box 13010
Research Triangle Park, NC
27709
Tel: (800) 822-9638
Canada
Nortel Networks
8200 Dixie Road, Suite 100
Brampton, Ontario
Canada L6T 5P6
Tel: (905) 863-0000
Australia
Nortel Networks Australia
380 South Kilda Road
4th/5th/6th Floor
Melbourne, Victoria
AUSTRALIA 3004
Tel: 61-3-8866-4646
For more information, please contact your local
Nortel Networks representative, or call
1-800-4-NORTEL (1-800-466-7835) or 506-674-5471
from anywhere in North America.
http://www.nortelnetworks.com
© 2001 Nortel Networks. All Rights Reserved.
*The Nortel Networks logo, the Globemark and, Shasta, Shasta
5000 BSN are trademarks of Nortel Networks. Nortel Networks
reserves the right, without notice, to make changes in equipment
design or components as progress in engineering or manufac-
turing methods warrant.
All other product or service names mentioned herein are trade-
marks of their respective owners or authorized users.
June2001
Nortel Networks Shasta 5000 BSN allows Telstra to deliver a new,
high-performance Internet to its customers through rapidly activated,
network-based, customised services. Australian businesses can now
access cost effective, robustly secure intranet and extranet interconnec-
tions of unprecedented geographical reach through services such as IP
VPNs. The Shasta 5000 BSN will enable first-to-market, personal IP
services such as network-based firewalls and secure `always-on' ADSL
Internet access.
Wholesaling: A Primary Market Driver
In Telstra's strategic initiative to `Broadband Australia' with ADSL and
related technologies they have introduced a variety of broadband whole-
sale services. The Shasta 5000 BSN allows Australian ISP's, leveraging
Telstra's wholesale service, to provision both broadband access and sub-
scriber IP services via the Shasta 5000 BSN infrastructure.
Teamed for Profitability
Telstra challenged the best technology companies in the world to show
how they could assist the realization of its' DMO vision. The selection
of Nortel Networks as a strategic collaborator in the fundamental archi-
tectural shift to a packet-based core is an important milestone in the
ever-strengthening Telstra Nortel Networks relationship.
"Nortel Networks has had a string of wins in the global carrier market
recently which is a strong endorsement of the successful integration of IP
technologies acquisitions...into an unbeatable portfolio of IP networking
solutions," said Steve Wood, Vice President, Nortel Networks Australia
and New Zealand.
A Bright Future
In the first phase of its new generation infrastructure, market leader
Telstra, partners with Nortel Networks Shasta 5000 BSN to ensure a
seamless migration from simple Internet access to new long-term revenue
subscriber focused services. As leaders in the marketplace, Telstra with the
Nortel Networks Shasta 5000 BSN will determine the future infrastruc-
ture for the new era.