Telstra signs $162 million telco contract with DoD

Telstra has secured a six-year, $162 million telecommunications contract with the Department of Defence (DoD) that is expected to result in savings of over $13 million per annum.

Under the contract's terms, Telstra will supply a range of telecommunications services for defence staff, including mobile phones, fixed-line voice, fixed-line data and broadband services.

Parliamentary Secretary for Defence Procurement, Greg Combets said the contract had been negotiated as a work order under the Australian Government Information Management Office whole of government telecommunications supply arrangements.

“I want to congratulate Telstra for being chosen as the preferred supplier based on value-for-money comparison,” he said.

“This contract is anticipated to result in a cost saving to Defence in excess of $13 million per annum, and an improved level of service to Defence staff compared with previous contracts.”

Telstra Enterprise and Government, group managing director, David Thodey, said the contract win was a major one for Telstra as it represents the first time the DoD has awarded all of its voice, mobile and broadband communications requirements to a single supplier since the competitive market in telecommunications was established in 1997.

"This contract also represents a significant win back from a combination of providers, including SingTel Optus, Vodafone and AAPT," he said.