Telstra leads $1.3bn CBA race

Telstra leads $1.3bn CBA race

Summary: The nation's largest telco Telstra has emerged as the clear front runner in the race to win Commonwealth Bank of Australia's 10-year, $1.3 billion telecommunications outsourcing deal.

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The nation's largest telco Telstra has emerged as the clear front runner in the race to win Commonwealth Bank of Australia's 10-year, $1.3 billion telecommunications outsourcing deal.

ZDNet.com.au expects the bank to finalise the contract with Telstra in the next few weeks, with some in the industry flagging 6 April as the likely date for the deal — likely to be Australia's largest corporate telco contract in 2009 — to be signed.

CBA has remained tight-lipped on the deal's outcome, with a spokesperson today again insisting that "all major telco providers, including Telstra" remain involved in the request for proposal (RFP).

"The CBA's RFP for telecommunication services is progressing well with the group currently in commercial negotiations. The details will be announced when the terms are finalised, which will be soon," a CBA spokesperson said.

The transition from CBA's incumbent telco partner, Telecom New Zealand subsidiary Gen-i, is likely to be a lengthy process. The majority of the existing contract with Gen-i ended in February 2009, however other components will remain in place for two more years.

"Irrespective of the outcome of the commercial negotiations, Gen-i will continue to be a strategic telecommunications supplier to the group," said the spokesperson.

Both Telstra and Optus have refused to comment on the outcome of the bids. Optus also declined to respond to speculation it had outlaid a significant amount on bidding for the work.

Last July Gen-i chief Chris Quinn said it had pulled out of the race because margins on such deals were slim, and probably better suited to a larger provider.

At CBA's half-year earnings announcement in February it reported slashing its telecommunications bill by $13 million, from $92 million in the previous half year to $79 million this half.

The news would be a major boon for Telstra, which has recently lost the chance to several major contracts including the $4.7 billion National Broadband Network deal and the Australian Taxation Office's managed network services deal.

Topics: Telcos, Banking, AAPT, Optus, Telstra

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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8 comments
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  • Strength to strength.

    As would be expected, the two biggest and best would stick together.
    anonymous
  • what a load of rubbish

    Ha ha ha - two biggest and best???!!!! Two chronically run, monolithic and retarded organisations working together!
    anonymous
  • Mr Quinn says it all

    Interesting off shoot.

    'Last July Gen-i chief Chris Quinn said it had pulled out of the race because margins on such deals were slim, and probably better suited to a larger provider'.

    Just proves it's cheaper and easier to sit back and wholesale via the bigger players, than actually get out there, create real competition and actually earn your profits.
    anonymous
  • what a load of rubbish

    What a monolithic retarded comment that was.
    anonymous
  • Mr Quinn says it all

    You are spot on there.
    anonymous
  • re what a load of rubbish

    How stupid is that remark......................why even bother.
    anonymous
  • Mr Quinn says it all

    What a load of BS. Anyone who knows anything about the CBA telco business knows it's a trophy account and nothing more.
    anonymous
  • Mr Quinn

    What a load of BS. Trophy account if Telstra wins. Ha Telstra you got burned again by losing such a large and important account, if they don't. Nice, hackettpool, heads I win, tails you lose, stupid remark, nothing more.
    anonymous