Telstra and Microsoft have expanded their strategic partnership to boost AI innovation in Australia. By integrating Microsoft’s AI technology with Telstra’s Intercity Fibre Network, the collaboration aims to accelerate digital transformation and enhance the AI ecosystem in the country.
Microsoft has chosen Telstra as a key partner to broaden its AI infrastructure in Australia to meet the rising demand. Telstra’s new high-speed Intercity Fibre Network will play a crucial role, with Microsoft already securing contracts for initial routes and collaborating with Telstra InfraCo to deliver advanced connectivity solutions.
Additionally, Telstra is investing in 21,000 Copilot for Microsoft 365 licenses to help its workforce adapt to an AI-driven future, marking the largest deployment of this AI service by any telecom company globally.
Telstra CEO Vicki Brady emphasized the importance of robust connectivity in driving AI advancements. “As we enter this AI era, secure and reliable connectivity is fundamental,” she said. “Microsoft’s AI leadership increases the demand for our infrastructure, and together, we’re building Australia’s AI ecosystem.”
Judson Althoff, Microsoft’s Executive Vice President, highlighted the partnership’s role in responsible AI transformation. “Extending our AI infrastructure allows us to support customers and partners in unlocking new opportunities and business value with AI,” he stated.
Fast, reliable, secure, and scalable connectivity is essential for AI technologies that process large data volumes. Telstra’s Intercity Fibre Network will enhance Microsoft’s AI infrastructure, enabling organizations across Australia to benefit from AI’s transformative power.
Brady noted that Telstra’s network connects Australia globally, enhancing Microsoft’s capacity and ensuring end-to-end connectivity across key routes in Australia and the Asia-Pacific region. “With 1,800 kilometers of fibre laid, our network will drive growth and digital prosperity, transitioning from the gigabit to the terabit era, crucial for AI and new data centers,” she added.
Telstra plans a phased roll-out of Copilot to regular Microsoft 365 users, following a successful trial where early adopters saved 1-2 hours weekly and reported improved work experiences. This initiative is part of Telstra’s goal to become an AI-driven company, complementing other AI tools and training programs for employees.
“We aim to equip our team with the best AI technology and foster a culture of continuous learning and innovation,” Brady stated. The partnership builds on a five-year agreement announced in 2022 to support Australia’s digital growth.
