What's Happening?
Telstra has announced a reduction in its national fibre network rollout, scaling back from an initial plan of 20,000km to 14,000km. This decision involves axing lower priority links, such as routes from Brisbane
to Darwin and Darwin to Perth via the coast. The company has completed the first corridor between Sydney and Melbourne, with plans to connect other major Australian cities. The network, now named the Aura network, aims to enhance data traffic capacity significantly, providing 35 times the capacity on the Sydney-Melbourne route compared to existing fibre. Telstra's CEO, Vicki Brady, emphasized the importance of engaging with regional communities and governments to optimize connectivity.
Why It's Important?
The reduction in Telstra's fibre rollout could impact regional connectivity and data traffic management across Australia. By focusing on high-demand routes, Telstra aims to enhance service quality in major cities, potentially leaving less populated areas with slower development. This strategic shift may influence regional economic growth and access to digital services. The decision reflects broader industry trends where companies prioritize high-traffic areas to maximize returns on infrastructure investments. Stakeholders in less prioritized regions may need to seek alternative solutions to improve connectivity.
What's Next?
Telstra plans to continue building out the remaining corridors, including Sydney to Perth and Adelaide to Darwin. The company will work with local and state governments to develop 'on-off ramps' for regional cities and towns, potentially improving local connectivity. As the Aura network expands, Telstra will likely face scrutiny from regional stakeholders advocating for more comprehensive coverage. The completion of the Sydney-Melbourne corridor sets a precedent for future expansions, with the network expected to operate for 20 to 30 years.
