Media Release: BRACKS GOVERNMENT DELIVERS AUSTRALIA’S BEST TELCO DEAL

FROM THE MINISTER FOR INFORMATION AND COMMUNICATION TECHNOLOGY

DATE: Wednesday, April 6, 2005

BRACKS GOVERNMENT DELIVERS AUSTRALIA’S BEST TELCO DEAL

The Bracks Government has achieved the best overall commercial terms in telecommunications procurement in Australia through its Telecommunications Purchasing and Management Strategy (TPAMS).

The Minister for Information and Communication Technology (ICT), Marsha Thomson, today announced the winners of the second tranche of TPAMS project.

“This is a great result for Victoria” Ms Thomson said.

“TPAMS will lower the Victorian Government’s telecommunication costs by almost $200M over the next 5 years and deliver more than $50M in telecommunication infrastructure for Victoria.

“The first tranche of TPAMS lowered Government telecommunication costs by approximately $105 million and this second tranche has delivered a further $85M in lowered costs.”

“This is in addition to the $5 million savings through a TPAMS deal announced in April 2004 with NEC Business Systems to operate and update the Government's CBD internal office telephone system.

“But what is even better is that this pricing is now available for all councils throughout Victoria to help them lower their costs as well.”

“TPAMS provides Government with the opportunity to migrate to next generation high capacity networks, including optic fibre.”

"The Victorian Government is leading the way, setting new benchmarks in value for money offerings by carriers. The $50M of additional infrastructure secured through TPAMS will increase competition in telecommunication markets, especially in regional areas, which is great news for all Victorians."

Approximately $51 million of Government's annual mobile, data and fixed voice expenditure went to the Government Approved Telecommunications Suppliers (GATS) panel as part of the second tranche. Companies on the GATS panel are Optus, Telstra, AAPT, Soul Pattinson Telecommunications and Macquarie Corporate Telecommunications.

Successful suppliers for tranche two are:
· Optus to provide fixed voice and mobile services;
· Telstra to provide data services;

Contracts from the second tranche will run over two years with three one-year options.
Ms Thomson said that the second tranche of voice, date and mobile services would be rolled out as quickly as possible and finalised by mid - 2006.

As part of the deal, all Government agencies and Victoria’s 79 local councils are eligible to take-up this offer.

Ms Thomson said the aim of TPAMS was to provide Victorian Government departments and agencies with a better range of telecommunications services, more competitive telecommunications pricing and the ability to access the latest technology to improve operations.