New Tech Contract Saves Victorian Taxpayers

31 January 2017

In a move that will save the Victorian taxpayers $129 million, the Andrews Labor Government has refreshed its contracts with telecommunications providers.

The contracts combine the expertise of the big players in Telstra and Optus with the more agile and competitive niche services offered by NEC, Vocus, MyNetFone, Mitel, and R-Group.

The new Telecommunications Purchasing and Management Strategy, known as TPAMS2025, introduces market contestability and will provide a boost to Victoria’s growing telecommunications industries.

In addition to the new contracts for voice, data, mobile and internet services, the government is moving towards a new unified communications approach for a range of services. These include audio, web and video conferencing to make it cheaper and easier for public servants working in regional and rural Victoria stay connected.

The five new TPAMS2025 State Purchase Contracts range in duration from three to four years and replace the three Telecommunications Carriage Services contracts established in 2004. The existing contracts cost $160 million per year, with cost of the new contracts dropping to $126 million per year.

The new agreements cover services like fixed landlines, internet connection, mobile voice and data services, and videoconferencing for all Victorian Government departments and agencies, with a focus on enhancing coverage across regional and rural Victoria.

The new contracts come in to effect on 1 February 2017.

Quotes attributable to Special Minister of State Gavin Jennings

“The Victorian Government is one of the largest users of telecommunications services in Victoria and like any other consumer we know it’s smart to shop around to get the best value for money.”

“The market for mobile services, data and internet services is dynamic and competitive, and we’re proud to have been able to take advantage of that competition to save Victorians $34 million per year.”

“Today’s announcement is great news for Victorian taxpayers and great newsps for the newer, smaller players in the market who can now grow their businesses and create new jobs.”

Reviewed 19 August 2020

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