Gen-i bows out of Comm Bank bid race

Telecom’s New Zealand subsidiary Gen-i announced today that it would no longer be in the running to provide Commonwealth Bank with telecommunications services.

Earlier this month, CBA announced it was looking for a telecommunications supplier to agree to a 10 year, possibly $1.3 billion deal.

Gen-i has been under contract with the bank to provide telecommunication services since 2000.

Gen-i says it is shifting focus from telecommunications to mid-market ICT services, with a particular focus on trans-Tasman.

"The nature of CBA's network means it is difficult to leverage this capability for other clients in the mid-market, where we focus on building our scale and capabilities for repeatable solutions,” said Chris Quin, CEO for Gen-i Australasia.

Gen-i will still continue with its contractual obligations to Commonwealth Bank until February 2009, but will still continue to work with the bank in the transition to whichever company succeeds in the tender process.

“While we are disappointed Gen-i is not participating in our RFP, we look forward to continuing our work together over the next few years. Gen-i will be supporting us in the transition to a new provider and continuing work on other selected services outside of the RFP,” said Commonwealth Bank CEO Michael Harte.