Telstra has selected Ericsson Australia for a $200 million project to design, supply and build a general packet radio service (GPRS) network for Sydney and surrounding areas.
While the initial agreement only covers Sydney, the deal will ultimately cover the rollout of GPRS networks across most of Australia's capital cities, including Adelaide, Perth and Brisbane, a source told IDG.
As part of the deal, announced yesterday, Ericsson will also upgrade Telstra's existing GSM network to support GPRS later in the year.
GPRS technology will allow the high-speed transmission of data services and advanced internet applications over existing GSM networks via packet switching and IP. GPRS standards enable data transfer rates of up to 115Kbps, compared with 9.6Kbps for GSM networks.
GPRS applications were tested earlier this year by Telstra using a trial system supplied by Ericsson.