Telekom Austria Group has drawn out plans to invest EUR 1.5 billion in Austria for upgrading telecommunications infrastructure over the next four years.

“Next Generation Networks (News - Alert) will provide the technological infrastructure basis for the 21st century. By modernizing Austria’s business and technology location, we are guaranteeing the further sustainable development of our information society,” said Hannes Ametsreiter (News - Alert), CEO, Telekom Austria Group, in a statement.

“Against the backdrop of a very challenging economic landscape, we are driving growth and stimulating the economy with our investments, making a significant contribution in the current recession,” added Ametsreiter.

Giving the details of the plan, Telekom Austria (News - Alert) Group officials said that the company plans to invest EUR 1 billion through 2013 in the modernization of the fixed net infrastructure despite current challenging economic conditions.

Officials opined that the Next Generation Network project will enhance Austria’s competitiveness and create new jobs.

Moreover, the Telekom Austria Group will invest EUR 500 million in the Austrian mobile communication network. With its broadband network, the Austrian mobile subsidiary mobilkom austria (News - Alert) ranks first in Europe in terms of penetration rate, covering over 30 percent of all Austrian households.

The first phase of the Next Generation Network (NGN) project will establish pilot 'Fiber City' projects to test fiber-optic broadband connections with speeds of up to 1 Gbps for 150,000 households.

It is currently installing FTTH in Klagenfurt and two districts in Vienna to test 100 Mbps broadband services from 2010. Villach will become the first 'Fiber City' from end-September.

Telekom Austria is installing fiber-to-the-curb (FTTC) technology in Villach to provide homes with up to 30 Mbps connections. In addition to the Fiber Cities, it will provide over 750,000 homes and businesses in rural areas with VDSL2 high-speed broadband at up to 30 Mbps.

The project will also see the existing copper phone network upgraded into an all-IP service platform, with all 2.3 million customers connected to the new system in phases.

In addition to the “Fiber Cities,” 750,000 private households as well as hotels and restaurants in rural areas will be provided with high-speed broadband access, offering transmission rates of up to 30 mbps, which, among other things, will enable innovative services in the areas of e-health and e-education.

“The Telekom Austria Group is making a significant contribution to the social and political goal of equal opportunities: the start of the network upgrade in rural areas is planned for this year,” said Hannes Ametsreiter.

Mobile broadband is gathering momentum also in the mobile communications segment, where the Telekom Austria Group’s subsidiary, mobilkom austria, is a major player with 440,900 mobile broadband customers and around 50 percent market share in the business customer segment. The planned investment of EUR 500 million over the next four years is aimed at enhancing the quality and further expanding the infrastructure of the mobile broadband network.