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Telstra Expands Relationship with Alcatel-LucentTelstra Expands Relationship with Alcatel-Lucent

Given Telstra's historical dominance in an increasingly competitive market, this new agreement is a big win for Alcatel-Lucent's enterprise division.

Sheila McGee-Smith

September 10, 2009

2 Min Read
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Given Telstra's historical dominance in an increasingly competitive market, this new agreement is a big win for Alcatel-Lucent's enterprise division.

On September 9, 2009, Alcatel-Lucent and Telstra announced that they have signed a new partnership agreement establishing Telstra as an Alcatel-Lucent premium Enterprise business partner. Telstra's Enterprise and Government group will now offer Alcatel-Lucent's enterprise portfolio, including the OmniPCX Enterprise telephony platform as well as ALU's OmniTouch unified communications and contact center solutions.Telstra is the traditional carrier incumbent in Australia (similar to our AT&T). Unlike the US, where AT&T was a private company (if highly regulated), Telstra was until 1997 wholly owned by the Australian government. Over the course of 10 years, in three tranches, the government sold its holdings. Telstra has only been a completely private company since October 2006.

Given Telstra's historical dominance in an increasingly competitive market, this new agreement is a big win for Alcatel-Lucent's enterprise division. I asked Sean O'Halloran, VP of Alcatel-Lucent's Enterprise Business for Australia and New Zealand, why this is happening now. He explained that the agreement is best thought of as an expansion of ALU's existing relationships with Telstra. Alcatel-Lucent was chosen as key partner when Telstra began modernizing its network with IP in 2005, culminating in the 2007 launch of Telstra's Next IP network. On the enterprise side, Telstra has sold ALU's OmniPCX Office solution for the SMB market for several years. Those successful pairings built relationship equity for ALU that presumably decreases Telstra's perceived risk of adding a new vendor to their portfolio.

In the press release, Telstra's Enterprise & Government Executive Director, Martijn Blanken, said, "We look forward to working with Alcatel-Lucent to provide our enterprise customers with additional telecommunications investment options to help them maximize productivity and realize the full value of IP based systems. The new partnership builds upon the companies' existing IP network strategic partnership." The "additional options" alludes to the fact that prior to this agreement, Telstra's principal telephony partners have been Aastra (earlier Ericsson), Mitel and Cisco.

Alcatel-Lucent's key theme in 2009 has been that in order to be successful, they have to help their carrier customers build "high leverage networks," defined as a converged, all-IP multi-service, multi-access network that is application-optimized and application-aware. Telstra began taking steps to build that kind of network four years ago.

At the end of the day, a new channel partner is only what you make of it. Alcatel-Lucent's challenge, as I see it, is to help Telstra highlight ways that the ALU enterprise portfolio working on Telstra's Next IP Network delivers synergies for enterprise and government customers not realized with competitor solutions.Given Telstra's historical dominance in an increasingly competitive market, this new agreement is a big win for Alcatel-Lucent's enterprise division.

About the Author

Sheila McGee-Smith

Sheila McGee-Smith, who founded McGee-Smith Analytics in 2001, is a leading communications industry analyst and strategic consultant focused on the contact center and enterprise communications markets. She has a proven track record of accomplishment in new product development, competitive assessment, market research, and sales strategies for communications solutions and services.

McGee-Smith Analytics works with companies ranging in size from the Fortune 100 to start-ups, examining the competitive environment for communications products and services. Sheila's expertise includes product assessment, sales force training, and content creation for white papers, eBooks, and webinars. Her professional accomplishments include authoring multi-client market research studies in the areas of contact centers, enterprise telephony, data networking, and the wireless market. She is a frequent speaker at industry conferences, user group and sales meetings, as well as an oft-quoted authority on news and trends in the communications market.

Sheila has spent 30 years in the communications industry, including 12 years as an industry analyst with The Pelorus Group. Early in her career, she held sales management, market research and product management positions at AT&T, Timeplex, and Dun & Bradstreet. Sheila serves as the Contact Center Track Chair for Enterprise Connect.