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Telstra has activated the Sydney–Melbourne coastal leg of its new “Aura Network” fibre network, with $1.6 billion investment aimed at powering Australia’s digital future.
Global network traffic is predicted to increase five to nine times by 2033, driven by increasing demand for AI, cloud, and data-driven services. This network forms a critical foundation for the nation’s long-term economic and technological progress.
Connecting Australia’s two largest cities with unprecedented capacity, the new Sydney to Melbourne route is envisioned to unlock major productivity gains, boost national resilience, and ensure the country is ready for the next wave of digital transformation.
With live tests between Sydney and Canberra delivering 700 gigabits per second on a single fibre channel and desktop simulated total capacity of 83.6 terabits per second over 1,200 kilometres.
A new Oxford Economics report, commissioned by Telstra, underscored the impact further: the report stated that the Aura Network, formerly known as the Intercity Fibre Network, is expected to deliver $29 billion in additional gross domestic product (GDP) gains to Australia by FY2039–40 and could enable up to 84,000 extra jobs across the economy, delivering a 0.5 per cent boost to national employment.
The report highlighted that the committed network routes of the Aura Network could provide a GDP uplift of $29 billion. If future demand and deployment conditions see the build of the potential routes, this could add a further $7 billion to the projection, bringing the total GDP gains to $36 billion and 100,000 extra jobs for Australians.
Telstra chief executive officer Vicki Brady said the Aura Network would give businesses and communities the confidence to grow and share in the opportunities of a thriving digital economy.
“As a nation, we have big priorities: making AI a national focus, building a skilled and adaptable workforce, and securing Australia’s economic potential on a global stage. None of that is possible without world-class digital infrastructure,” Brady said.
“This network represents a bold ambition. It’s not just fibre in the ground – it is a backbone for innovation, productivity and resilience that helps futureproof Australia for decades to come.”
Brady said with Australia generating more data than ever before – through generative AI, connected infrastructure, and other tech advancements – it needed robust, high-speed connectivity to support businesses in cities and across the regions who are innovating for tomorrow.
“The Aura Network will help deliver the connectivity Australian entrepreneurs and innovators need to build the solutions to power Australia’s future.”
Telstra’s Aura Network, delivered by Telstra InfraCo, Telstra’s infrastructure business, is envisioned to help drive productivity and innovation, create high-skilled jobs, and play a crucial role in sustaining long-term economic growth across the nation.
The enhanced connectivity will also empower digital services providers, hyperscalers, and early adopters such as foundational partner Microsoft to tap into Australia’s rapidly expanding digital markets, with the new Sydney–Melbourne route covering more than 80 operational data centres.
It will also help non-tech industries adopt data-driven solutions, from driverless trucks in mining and smarter farming practices in agriculture to real-time imaging in healthcare, more immersive learning in education, and supporting Australia’s defence and national security through improved network resilience and diversity.
The report further stated the committed network benefits will be felt in both the short and long term: during construction, the Aura Network is estimated to add $2 billion to the economy and support 8,900 construction-related jobs.
With live tests on a single fibre channel delivering transmission rates of 700 gigabits per second, more than six times faster than most networks today, the Aura Network allows enterprises, hyperscalers, government agencies, telecommunication carriers, and others to move data faster, more reliably and at scale.
Built with two separate pathways, one for express, long-distance traffic between the capitals and another with potential to connect hundreds of regional towns and cities, the network gives customers flexibility to choose what works best for them: from owning their fibre outright to scaling capacity up and down as needed or using a fully managed service with built-in reliability and speed.
In simulated testing, the network has achieved groundbreaking fibre capacity of 83.6 terabits per second over 1,200 kilometres. Based on conservative real-world estimates, this translates to an estimated 35 times more capacity per path than standard carrier networks, along with an estimated 50 per cent improvement in resiliency.
The activation of the Sydney to Melbourne coastal route follows the June launch of the Sydney to Canberra coastal leg and the completion of the latest leg, Canberra to Melbourne coastal, and forms part of the 5,000 kilometres of network built to date.
Additional routes connecting Adelaide, Perth and Brisbane will come next.
