Optus puts $186.5 million figure on ATO deal

Optus will implement an application-aware IP network for the Australian Tax Office as part of a four-year, $186.5 million network managed services deal.

Late last month, the ATO revealed it had entered "final negotiations" with Optus for the managed network services (MNS) bundle.

It is one of three outsourced service bundles the ATO wants to award by mid-2010. The other two cover end-user and centralised computing.

The ATO said it "currently spends approximately $60.5 million a year" on network services.

This means the agency could spend some $55.5 million less over the four-year contract period, compared to its current spending.

Dimension Data were the other company shortlisted for contract negotiations in December 2008. Telstra and CSC were also unsuccessful bidders.

Optus said it will provide services that cover voice and data carriage, telephony, wide and local area networks, video conferencing, and call centre infrastructure and services.

It will also implement and manage an application aware IP network underpinned by its Evolve network. It will connect some 70 ATO offices, Optus said.