Telecompaper

Telekom Austria has announced plans to invest EUR 1.5 billion over the next four years to modernise the country's telecommunications infrastructure, including EUR 1 billion on a next-generation fixed-line network and EUR 500 million to meet growing demand for mobile internet access. The first phase of the Next Generation Network (NGN) project will establish pilot 'Fibre City' projects to test fibre-optic broadband connections with speeds of up to 1 Gbps for 150,000 households. It is currently installing FTTH in Klagenfurt and two districts in Vienna to test 100 Mbps broadband services from 2010. Villach will become the first 'Fibre City' from end-September. Telekom Austria is installing fibre-to-the-curb (FTTC) technology in Villach to provide homes with up to 30 Mbps connections. In addition to the Fibre Cities, it will provide over 750,00 homes and businesses in rural areas with VDSL2 high-speed broadband at up to 30 Mbps. The NGN project will also see the existing copper phone network upgraded into an all-IP service platform, with all 2.3 million customers connected to the new system in phases. It will start upgrading exchanges to IP in Salzburg and Lower Austria by end-2009. Subsidiary Mobilkom will invest EUR 500 million over the next four years to expand and upgrade its network. The operator currently has 440,900 mobile broadband customers.