DoD and Telstra Ink $162M Deal

By Greg McNevin

May 9, 2008: The Department of Defence has announced that it has signed a six-year, $162 million telecommunications services contract with Telstra.

The deal will see Telstra deliver mobile phone, fixed line voice and data and broadband services, as well as improved service levels to DoD staff, and will do it in such a way that the DoD will be able to save more that $13 million a year.

The deal is a significant win for Telstra, as it is the first time the DoD has awarded a contract for the full breadth of communications services to a single provider. In the past, AAPT, Optus and Vodafone have provided the departments communication services.

“I want to congratulate Telstra for being chosen as the preferred supplier based on value-for-money comparison,” said Parliamentary secretary for defence procurement, Greg Combet.

Combet added that the deal was negotiated under the Australian Government Information Management Office whole of government telecommunications supply arrangements.

Comment on this story