Tasmanian govt happy with Telstra's price

The Tasmanian government is confident a new AU$30 million whole-of-government telecommunications deal will deliver savings to its departments, despite awarding the bulk of the contract to its incumbent supplier Telstra.

Late last month Telstra beat six other telcos to win the majority of the state's data networking and Internet services work for at least the next three years, in a new contract dubbed "Networking Tasmania II". Baby carrier and mobile application service provider BBW Telecom also carved off a small slice of its own, valued at AU$300,000.

"The Networking Tasmania II request for tender was a competitive process and will result in savings for government customers," the state's Rebekah Burton told ZDNet Australia via e-mail today. Burton is deputy secretary of Tasmania's Department of Premier and Cabinet, and chair of government technology purchasing group TMD.

Burton declined to reveal which other telcos competed for the work, citing probity reasons.

Despite Telstra's win, the state has also left itself the option of disbursing work to other telcos in the future. "Additional suppliers can be selected over time," said Burton.

Although Networking Tasmania II primarily covers data networking and Internet services, the state had previously noted it would consider telco proposals for the supply of voice telephony services. Telstra also currently provides the majority of voice services used by the state.

"The government has decided not to award a contract to any respondent to the Specification for Voice Services component of the NT II RFT," said Burton. "However, please note that TMD, on behalf of the government, will continue to investigate and evaluate options for the future supply to government of voice services."

The Tasmanian government's vision for Networking Tasmania II is for Telstra to implement a new telecommunications data network founded on a separate Internet Protocol-based (IP) network for each government department or external agency, with additional links to join them together.

The state's aims for awarding the contract included a desire for low technical and contract management complexity and cost, as well as the ability to maintain strong government control over service monitoring and development.

"These aims are met by the new arrangements," said Burton. "In particular, the arrangements provide for greater transparency and flexibility in the purchasing of data communications services."

The new contract will come into force on 1 June.

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