Ericsson Australia has signed a $US40 million deal with National Telephone Marketing (NTM) to supply a voice over Internet Protocol (VoIP) network to customers throughout Australia, Asia, the US and Europe.
Ericsson is currently building the network with a progressive cut-over of the network expected to start in September this year.
The first stage of the project is expected to enable 150 million minutes of calls per month to be made on the network.
Nigel Maitland, vice president of NTM, said this figure was likely to double as stage two of the project began.
Maitland said he expects the cost savings from the project to be "quite substantial", but declined to comment in dollar terms.
It is expected NTM's new network will enable the company to sell large amounts of wholesale capacity straight into the US, Europe and Asian markets.
"Our main goal out of this network is the ability to have VoIP at carrier or near-carrier grade."
Maitland said the company expects to encounter a few integration issues, but contingency plans are in place.
Rob Hacker, director of new ventures for Ericsson Australia, said: "This is a significant breakthrough for NTM globally because it will create one of the highest capacity carrier IP telephony networks in the world."