Parliamentary Secretary for Defence Procurement, Greg Combet, last week announced the Department of Defence had signed a $162 million contract making Telstra sole supplier for voice telecommunication services.
The six-year contract covers mobile phones, fixed line voice, fixed line data and broadband services provided by the Chief Information Officer Group to Defence users. Telstra will also supply helpdesk facilities.
This is the first time Defence has awarded all telecommunications to a single supplier since the opening up of the telecommunications market in 1997.
According to Intermedium's data, Defence awarded telecommunications contracts worth a total of $200 million in 2006-07 (this figure includes satellite, video conferencing and other telecoms equipment and services). Telstra (including Telstra Business) was the dominant supplier with contracts worth $106 million, but other suppliers included Optus ($46m), Vodaphone ($4.4m) and AAPT ($458,000).