Austrade wants a cheaper telco

The Australian Trade Commission (Austrade) has flagged a desire to reduce its telecomms spend as it goes to market for one or more suppliers for at least the next three years.

In late August the agency, which assists Australians in overseas business expansion and investment, called for carriers to make their pitch for voice and data work, including fixed line, mobile, conferencing and broadband services.

Austrade has an extensive network connecting its 18 local offices, with additional representation in more than 140 overseas locations, according to the agency's annual report in June 2005. At that time it had some 1050 staff, with around half working offshore.

The core business driver for putting the agency's telecomms spend on the market was "to reduce the cost of domestic telecommunications services being provided to Austrade", according to tender documents.

"Austrade has a preference for a single supplier for the provision of the services," the documents said, while noting the agency could decide to appoint more than one.

An Austrade spokesperson was not immediately available to name the agency's current supplier's, but much of Austrade's international data work is handled by carrier Asia Netcom under an agreement signed in June 2004.

The tender documents reflect Austrade's focus on price, stipulating billing requirements in detail.

"It is highly desirable that the monthly bills contain full explanations of all charges and any variations," the agency said.

"Austrade is not seeking a fully managed service, however, effective account management and billing services must be supplied as part of this service, at no additional cost."

For the period of the 2005 year, Austrade estimated that it made 370,000 local, 137,000 fixed to mobile, 291,000 national and 36,000 international calls. The agency has some 275 mobile phones.

Austrade will decide on one or more new suppliers after it finishes taking responses to its tender in late September.

Most of Australia's major carriers are part of the government's whole of government purchasing scheme for telecommunications and are thus eligible to supply services to Austrade.