Microsoft is in talks to invest up to $1 billion in Australian networks, as part the launch of its new $1 trillion enterprise mobility platform.
The investment comes as the company begins to roll out the new platform in Australia, which it will deploy to businesses across the country.
Key points:Microsoft said it would invest $500m to build Australia’s first commercial fibre-optic network to provide enterprise mobility and enterprise connectivitySource: AP article Microsoft has been looking to build an enterprise mobility network in Australia for several years and the move comes after it unveiled a fibre-to-the-premises (FTTP) fibre-based network in 2019.
“This is a critical first step in providing our customers and partners with the best possible connectivity on a wide range of products and services,” Microsoft Australia chief operating officer Scott Healy said in a statement.
Mr Healy told the Financial Review that the company had “no doubt” it was on the right track.
“We believe that with the new network in place, we will be able to deliver a strong and secure enterprise connectivity solution across the enterprise and residential networks,” he said.
“The network will offer our customers more choice of product offerings, greater choice in what they can and cannot connect to and enable more flexibility to connect across the entire network.”‘
The opportunity is real’The move is a significant boost to Microsoft’s ambitions to bring its new technology to Australia, as it builds a new enterprise mobility infrastructure.
The company will use the NBN to provide fibre to the home network for businesses and businesses will be responsible for providing its own network.
The announcement comes just weeks after Microsoft unveiled a plan to invest in the NBN and set up a regional network in the US, Canada, Australia and New Zealand.
Microsoft’s fibre-wireless infrastructure will also include fibre- to-the network (FTTN) technology, which will be used to provide mobile connectivity in the country, along with the network to connect to the cloud.
The fibre-infrastructure rollout in Australia will begin in 2018, with a rollout to the rest of the world expected in 2020.
The move comes in the wake of the Federal Government’s decision to pull out of the fibre-coaxial (FC) technology that has been the basis of the NBN for over 20 years.
The decision has been criticised by many Australian telcos, with many saying that the fibre to- the-premise (FTLP) technology will be better than the NBN.
Mr Healys said the move was part of a broader move by the company to provide better connectivity to its Australian customers.
“As the company expands across the world, we look forward to working with our partners to deliver on our promise to connect our customers to the future of computing,” he told the paper.
“This new network will enable us to deliver the best broadband service in Australia while providing an opportunity for us to provide a faster and more reliable fibre network.”
More to come.