Telstra Corp Ltd, Australia's biggest phone company, said contracts awarded to US-based Cisco Systems Inc and Sweden's Ericsson to build a new network were worth more than A$1 billion ($730 million) each.
Telstra announced the contracts to build an Internet Protocol (IP)-based network and a third generation (3G) mobile service on Tuesday when it unveiled its five-year plan for the company, but did not disclose the value of the deals.
A third contract was awarded to French telecoms equipment manufacturer Alcatel which said the deal, its biggest ever, was worth 2.18 billion euros ($2.55 billion).
"Both the Ericsson and Cisco MOUs we expect would result in contracts worth more than a billion dollars each," a Telstra spokesman said.
Telstra is overhauling its copper wire-based network to build a so-called next generation network as part of a big cost cutting drive to stem a decline in profits.