Prysmian signs telecom cables supply agreement with Telstra

Oct. 2, 2007
OCTOBER 2, 2007 -- Prysmian Cables & Systems has announced a three-year agreement to continue the supply of both fiber-optic and metallic communication cables to Telstra, the largest telecommunications service provider in Australia.

OCTOBER 2, 2007 -- Prysmian Cables & Systems (search for Prysmian) has announced a three-year agreement to continue the supply of both fiber-optic and metallic communication cables to Telstra (search for Telstra), the largest telecommunications service provider in Australia. The contract, based on a pre-existing agreement, has been secured by Prysmian Telecom Cables and Systems Australia Pty Ltd.

Prysmian successfully completed a global tender process for this supply contract, the largest of its kind in Oceania, to maintain its long-term commercial partnership with Telstra. Prysmian has been the carrier's only contracted supplier of communications cable since 1998, when the company operated as Pirelli Telecom Cables and Systems Australia Pty Ltd.

"In order to guarantee that Prysmian can adequately service Telstra's increasing cable requirements under all circumstances, we plan to double the capacity of our Dee Why manufacturing facility in New South Wales. This investment will afford us the highest levels of service irrespective of Telstra's level of demand," said Prysmian's CEO in Australia, Paul Atkinson.

Telstra's executive director of procurement, Ian Wheatley, said, "We are confident that Prysmian is ideally placed to meet Telstra's demands for quality, cycle time improvements, and ongoing focus on costs to give us a surety of supply. This contract is further evidence that Telstra is ready, willing, and able to roll out high-speed broadband to Australian homes and businesses, should the regulatory hurdles be removed. We have a plan and we have the contracts in place to execute it."

The investment in the increased manufacturing capacity at Dee Why, to be completed by early next year, provides Prysmian with the opportunity to offer greater flexibility of supply and to develop supply chain efficiencies for Telstra, the company believes.

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