New shiny server software license deal will help boost revenue

By Simon Niesink October 20, 2018 3:03pmA new shiny server licensing deal has been signed by the Australian Government and a major telco to ensure it can boost its revenue.

The new deal with the Telstra Corporation, which runs the telco’s fibre-to-the-premises (FTTP) network, includes a range of new services and products, including the new Shiny Server License (SHLV), which is used to run servers on the network.

The deal includes a $5 million commitment towards a “significant investment” in a new telco-owned server farm and a $10 million commitment for “delivering innovative solutions” to “provide better performance, reliability and security for customers”.

The Government says the deal will “help Australia’s telecommunications industry become more competitive and offer greater value to customers”.

“As part of our commitment to deliver better service for our customers, we are extending our support to telcos, including Telstra, for a significant investment in a Telstra-owned and controlled server farm,” the Government said in a statement.

The SHLV licence will be “available to Telstra customers in Australia” until June 2019, it added.

The telco, which owns the Telco and Tracfone networks, has long had a strong stake in FTTN, and has had a number of projects in development that have not yet received a formal go-ahead.

But its new deal is the first time it has committed to providing FTTP services, which the telcos have not been able to access in the past.

Telstra chief executive Mike Quigley said in March the telcoms “need to realise that there are some very significant opportunities ahead” for the telkoms FTTL-based network.

“This will enable us to offer services that are better for our network and for our customer base, and to help our network grow,” he said.

The Government’s commitment to Telco is in addition to $5.5 million in funding to Telcos in 2020 that will be put towards “deliver[ing] innovative solutions”.

The $10m commitment comes at a time when Telstra is under pressure from Telstra to raise its profits as it struggles with the NBN rollout.

The NBN is due to be rolled out in the ACT by the end of the year. 

But the Government has been criticised for not having the resources to complete the network in time, and Telstra’s shares have fallen since Telstra made a public pledge to deliver 100Mbps connections by 2021.

In a separate statement, Telstra CEO Tim Buckley said that the telos’ FTTD infrastructure was “at risk of falling behind” as “the NBN continues to roll out” on an “ongoing schedule”.

He said Telstra was “in discussions” with other telcos to offer FTTW services in the future. 

The Government said it was committed to “delving into more innovative ways” to deliver “better service” to its customers, and said it would look to provide additional funding to telcos in future.

“The government will continue to engage with telcos across Australia, and the telkos need to realise there are other opportunities ahead,” it said.