Telstra, Microsoft push AI through Australian fiber network

Telstra is extending AI infrastructure from Microsoft throughout the footprint of its Intercity Fibre Network project

Australian operator Telstra is extending Microsoft’s AI infrastructure throughout the footprint of its Intercity Fibre Network project as part of an extended strategic partnership between the two companies. The tie-up will accelerate Australia’s AI ecosystem by building high-capacity intercity fiber routes for Microsoft, they said, adding that its underscores the critical role that connectivity infrastructure playing in fueling AI advancements.

An extension of a strategic five-year agreement established in July 2022, the new agreement will enable Microsoft to achieve “end-to-end connectivity” across telecommunications routes in Australia and the Asia-Pacific, said Telstra CEO Vicki Brady. Without robust connectivity, argued the companies, Australia’s consumers, organizations and industries cannot fully leverage the benefits of AI. Telstra’s Intercity Fibre Network is a terrestrial fiber network that gives way to and international subsea fiber network.

Telstra has already laid 1,800 kilometers of fiber across Australia as part of its fiber project.

As part of the updated deal, Telstra is also investing in 21,000 Copilot for Microsoft 365 licenses for its employees, claiming to now have the largest deployment of the generative AI service in Australia. Telstra said it will roll out Copilot in phases. Applications include an internal gen AI chat function called AskTelstra and One Sentence Summary — a feature that turns customer interactions and transactions into a concise summary — as well as a company wide Data & AI Academy to train employees to use AI.

“We’re dedicated to equipping our people with the best AI technology and upskilling them to thrive in the workforce of the future,” said Brady. “As we move into this new era of AI, connectivity has never been more fundamental. There’s so much to be excited about when it comes to AI — including generative AI tools like Copilot — but none of it works without the foundational layer of secure, reliable connectivity.”