The contract, signed with Education Queensland, encompasses Web hosting, Web access and domain name management. A spokesperson for Education Queensland says that while there may be an incidental cost reduction, it's the value added services that won the deal.
"Ultimately there may be [a cost benefit]... it will cost about the same, but it's the add on services that are the bonus," he said.
Telstra spokesman Anton Jones said that while the telco giant no longer offers the edunet service, they are still keeping their eye on the ball.
"With large customers, obviously it's something we keep an eye on... Edunet wasn't the right way to go forward," he told ZDNet Australia, saying that Telstra had made "a decision to move away from a specific product, and move more to our core products".
The solution will cost $164 million over the first three years, but the total revenue could add up to $20.3 million over five years.
