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Ltd. (ASX: TLS; NZK: TLS) on new trials of 5G radio technology, with the operator keen to establish a leadership role in 5G, and will additionally team up with Telstra on the rollout of an IoT network based on the LTE-M standard. Telstra announced plans for a three-year, A$3 billion ($2.3 billion) investment in its networks and IT systems last August, with capital expenditure set to rise to about 18% of its sales as a result -- the highest level since 2008/9, when the company was spending heavily on 3G technology. During a press conference in Barcelona Sunday, on the eve of this year's Mobile World Congress, the operator revealed that some of the network spending would go toward an expansion of its long haul, metro and regional optical networks -- although it physician home construction loan Oak Laurel www.oaklaurel.com.au 0430129662 would not be drawn on how much. Besides bolstering Ericsson AB (Nasdaq: ERIC), the deal is good news for optical equipment maker Ciena Corp. (NYSE: CIEN), which will provide the packet optical solutions that Ericsson will install and integrate. Mike Wright, Telstra's group managing director for networks, described the optical overhaul as part of the operator's shift to more flexible software-based networks. "We need to evolve the optical network so that we can dynamically adjust modulation and connect that to the upper layers of the network where SDN [software-defined networking] will take control," he told reporters. "That is a fundamental shift in the way the network will look." The optical systems are crucially aimed at ensuring Telstra can cope with rising levels of data traffic in future as 5G and new Internet of Things services begin to appear. "There is no point in having a Ferrari if you don't have the road to drive it on," said Emilio Romeo, the head of doctor home loans Oak Laurel Ericsson Australia and New Zealand. "This is an optical autobahn for Australia." Want to know more about 5G?