Telstra Launches AU$1.6B Fibre Network and Satellite Messaging to Boost Australia’s Connectivity
Image Credit: Umberto | Splash
Telstra Group Limited, Australia’s largest telecommunications provider, has launched a AU$1.6 billion fibre optic network and a satellite-based text messaging service, aiming to meet rising national data demands—driven in part by artificial intelligence—and to improve connectivity in remote regions. These initiatives arrive as Telstra faces increased competition from new rivals such as HyperOne and amid ongoing investment in digital infrastructure across the country.
High-Speed Fibre Network to Support AI and Business Connectivity
Telstra’s Intercity Fibre Network, once complete, will span approximately 14,000 kilometers and connect major cities, including Sydney, Canberra, Melbourne, Brisbane, Perth, Adelaide, and Darwin. The Sydney-to-Canberra route via Wollongong is set to launch on June 25, 2025, with the Canberra-to-Melbourne and Sydney-to-Melbourne routes scheduled to follow in early 2026.
The network will be capable of transmitting up to 83 terabits per second per fibre pair, providing capacity for AI-driven applications such as machine learning and cloud computing. Microsoft has been announced as a foundational customer, leveraging the network to expand its data center and AI infrastructure in the Asia-Pacific.
The project also includes the provision of dedicated “dark fibre” for banks, governments, and data centers, alongside high-speed wavelength services for business and enterprise use. Telstra’s infrastructure arm, InfraCo, has already laid over 4,000 kilometers of fibre, overcoming significant challenges such as a 1-kilometer crossing beneath Sydney Harbour, with 15 active construction sites. Partners include Prysmian (cable supply and installation) and Corning (optical technology).
Industry Context & Challenges
Telstra’s network is intended to support AI-driven productivity in sectors like healthcare and finance. Regional access points are designed to help narrow the digital divide and enable broader economic participation.
Telstra’s recent acquisition of Versent (a cloud and security company) for AU$267.5 million in 2023 and the announced reduction of up to 2,800 jobs by late 2024 reflect ongoing financial pressures and restructuring within the company. In addition, the company faces competition from HyperOne, which is building a 20,000-kilometer national fibre network with over 2,000 regional access points and a planned subsea cable.
Satellite Text Messaging Service for Remote Australia
Telstra has also launched a satellite-to-mobile text messaging service in partnership with SpaceX’s Starlink Direct to Cell technology. Officially announced on June 3, 2025, the service enables users to send text messages, GPS coordinates, and emojis in areas without traditional mobile coverage, provided there is a clear view of the sky.
Initially, this service is available to users of the Samsung Galaxy S24 and S25 series on Telstra’s Upfront mobile plans. Supported users will see “Telstra SpaceX” displayed on their devices when connected via satellite. The service has been tested with over 55,000 messages sent in remote regions, including the Northern Territory and Western Australia, and covers approximately 3 million square kilometers. The Australian Radio Quiet Zone and offshore territories are excluded from coverage.
The service does not support emergency calls (such as Triple Zero/000); instead, users must message a third party to seek help. Message delivery times may vary depending on satellite availability and atmospheric conditions. At launch, there is no extra cost to eligible users.
Limitations of Current Technology
Telstra's satellite-to-mobile messaging service is designed to provide basic SMS connectivity in areas lacking traditional mobile coverage. While the current service is limited to text messaging, Telstra has indicated plans to explore the addition of voice, data, and Internet of Things (IoT) capabilities as satellite technology evolves.
Competitive and Economic Outlook
Telstra’s investments are part of a broader trend, with rival HyperOne building its own AU$1.5 billion fibre network focused on affordability and regional access, including plans for a subsea cable by 2026. Optus and TPG-Vodafone are also developing competing satellite messaging services; Optus’s offering has been delayed by device certification issues.
While estimates for the overall economic impact of AI-driven infrastructure upgrades vary, industry and government sources consistently highlight the role of high-capacity fibre and universal access in Australia’s digital future.
Workforce reductions and heavy reliance on Starlink for the satellite service introduce operational and geopolitical uncertainties.
Source: Telstra, ABC News, IT News, Hyper One, AU Government
TheDayAfterAI News
We are a leading AI-focused digital news platform, combining AI-generated reporting with human editorial oversight. By aggregating and synthesizing the latest developments in AI — spanning innovation, technology, ethics, policy and business — we deliver timely, accurate and thought-provoking content.