Telstra snags $1bn CBA deal

Telstra snags $1bn CBA deal

Summary: 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.

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TOPICS: Telcos, Banking, Telstra
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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.

Topics: Telcos, Banking, Telstra

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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7 comments
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  • Why Separate Telstra??

    Big business like the CBA know that a vertically intergrated Telstra can offer the complete suite of end-end services that value add business.

    Break up Telstra and ALL Australians will be affected by this and the economy will suffer accordingly.

    I hope Krudd and Conjob are listening!!
    anonymous
  • Big business

    Wrong, Telstra were willing to meet the price points. Big business can leverage decent pricing from Telstra with national call rates set at $0.02 and SMS at $0.005. What will be interesting is how well billing and services are delivered. Telstra are happy to lose money on the 10 year contract for now, let's see how long they maintain that position.
    anonymous
  • Loss leader

    Telstra wont make any money on this contract - the demands of CBA will be never ending and Telstra will end up having to hire a whole lot of extra staff to cater to the CBA's every whim.
    I wonder if they'll be located in Manila?
    anonymous
  • Big business

    If you think Telstra are the only ones willing to meet the price points to obtain the biz, then you are dreaming. Optus and the others would have been happy to obtain the contract at heavily discounted pricing, that's for sure.
    anonymous
  • Loss leader

    You wish, but don't bet on it..................there not that stupid !
    anonymous
  • not that stupid

    Stupid no, incompetent maybe, understanding the bank's business - not at all. I'll put my money on the bank lawyers being better than the telco lawyers. I'd also give it 2 years honeymoon then watch the fun begin..
    anonymous
  • not that stupid

    Seems to be something that you would like to see happen, which means you are just another Telstra hater, with a nasty opinion, which is pretty worthless really.
    anonymous