The project is believed to be the largest installation of its Connect IP package to date.
The Connect IP managed service routes all of Australia Post's data across the Telstra-owned backbone using Post's routers.
As part of the contract signed earlier this year, the telco will manage the network and routers.
Industry sources put the size of the contract close to $90 million.
NCR Australia picked up a slice of the work to manage the routers at Australia Post for Telstra.
The three-year leased contract is estimated to be worth about $8.5 million to NCR. Australia Post confirmed the contract but declined to comment on the project except to say the network upgrade had increased its ability to offer new products and services.
"It allows Australia Post to offer competitive services," the spokesman said.
Unlike other postal services globally, Australia Post offers a range of financial services.
Increasingly the number and type of financial transactions it carries out for third parties have become key goals for it.
For example, the agency will launch an online authentication option for its bill payment service using two-factor devices during the first half of 2006.
Australia Post's entry into this market will make it easier for many organisations to justify two-factor technology, as the costs would be shared. Australia Post's 2004-05 report shows that it moved into identity protection and issuing identity cards.
In the previous year, Australia Post installed a photo-card service in South Australia.
According to the report, the development work for that product positioned the organisation to offer the service more broadly.
Telstra's Connect IP service supports both voice and video-based applications. Australia Post is already running about 300 applications over the network.
It has harnessed the network's video capabilities to resolve reading errors encountered by its barcoding machine.
Telstra secured late last year another win with Australia Post to supply all of the organisation's fixed, mobile and data communications for the next five years.
This is cache, read story here
