Telstra snags $1bn CBA deal

The Commonwealth Bank has announced Telstra as the winner of its 10-year managed services contract, officially confirming a ZDNet.com.au report late last month that the telco was the front runner for the deal.

The Commonwealth Bank has announced Telstra as the winner of its 10-year managed services contract, officially confirming a ZDNet.com.au report late last month that the telco was the front runner for the deal.

The deal, which will see Telstra providing telecommunications and managed services via Telstra's Next IP and Next G networks to the bank's branches, contact centres, EFTPOS network and non-branch ATMS, is worth up to $100 million a year, according to the companies.

"Our arrangement with Telstra is a partnership which is directly focused on customer satisfaction through well-defined shared goals, commitments and business outcomes. This is the first time we have struck a deal of this kind," the Commonwealth Bank's CIO Michael Harte said in a statement.

"The Commonwealth Bank is embarking on a significant transformation project and we are delighted to be a key partner. Through Telstra's own transformation we have invested in world class networks and services and alliances with leading partners. We look forward to bringing these advances to the partnership to offer real benefits to the group, its customers and staff," David Thodey, Telstra's group managing director enterprise and government said in a statement.

Optus had also been one of the bidders. Telecom New Zealand subsidiary Gen-i previously held the contract, but decided to pull out due to the slim margins on the deal.

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