AUCKLAND- Telecom Corporation of New Zealand said on Monday it had finalised the five-year, AU$500 million contract with Commonwealth Bank Group to supply telecommunications services announced in July.
Under the outsourcing arrangement, Telecom subsidiary Telecom Corporation New Zealand Australia (TCNZA) would streamline the bank's telecommunications infrastructure into a single Internet protocol network for data, voice and video services.
CBA would only be required to pay for services used, the companies said in a statement.
AAPT -- 80 percent-owned by Telecom and due to be subject to a mop up offer -- ComTech and EDS would provide expertise as part of the deal.
CBA said it expected the arrangement would result in similar information technology cost savings as it had achieved with EDS Australia -- more than 20 percent per year since 1997.
Telecom shares, already trading up around 13 cents, jumped to be up 33 cents at NZ$6.75 early on Monday.
CBA also announced it had taken a five percent stake in TCNZA, plus an option to take up to 35 percent in the next five years.
"TCNZ Australia will provide a seamless service, with single point of accountability to the Bank, that will enable link and integration across the Commonwealth Bank Group's 1,100 branches, around 4,000 agencies, 100,000 Eftpos (electronic point of sale transfer) terminals and nine million customers," Telecom chief executive Theresa Gattung said.
