As part of the deal, Ericsson will supply its metro optical equipment, including gear that supports 100Gbps services.
Ericsson will also provide Telstra with a mix of ROADM, multiservice DWDM, and Packet Optical Transport Platform (P-OTP) equipment.
By deploying the equipment, Telstra will be able to reduce total cost of ownership by reducing the number of network elements and equipment space and consolidating operations and maintenance for the network with reduced power consumption, Ericsson said.
"This technology evolution adds to our existing network foundation, and allows for an efficient evolution through significantly increasing capacity, reducing latency, and streamlining our operations," Telstra's executive director for networks, Mike Wright said in a statement.
Ericsson is already providing Telstra with a suite of long-haul equipment. The deal will see the Swedish vendor expands its presence in the Australian incumbent carrier's metro, regional and inter-city optical networks.
The win is Ericsson’s second contract announced with the Australian telco in a week.
Both company announced Monday that they would extend their strategic partnership on LTE, including expand Telstra’s LTE network across Australia and begin conducting technology trails of LTE-Advanced Carrier Aggregation, LTE heterogeneous networks and LTE Broadcast this year.
In a separate announcement, Bharti Airtel has announced that it will deploy Ericsson’s intelligent network (IN) solution across all of its 23 circles in India.