Internode is in the box seat to retain the
Internet services contract in the South Australian government's
EDS contract carve-up.
However, the paperwork is unlikely to be finalised until after
the March 18 State election, and the ISP continues to work under
the terms of its current contract, which is said to be worth
around AU$2 million per year.
An original field of around seven applicants has been reduced
to just three -- Telstra, Adam Internet and Internode -- in an
evaluation process that has already taken more than 18
ICT Council for SA chairman David Raffen said that the
protracted process is costly both for the companies involved and
for the government. ISP prices have tumbled over the past year
and services have changed dramatically with the introduction of
ADSL2+ services over much of metropolitan Adelaide.
"In an industry that moves at such a pace, it's not just the
technology that can change, the companies themselves can change
over the course of a year or two," Raffen said.
"Because the selection process has taken so long, you have to
question whether you are getting the best of what's
Sources close to the agencies have reported previous data
pricing at 6-10 cents per MB, with the new rates closer to 1 or 2
cents. This long drawn-out process has potentially cost the South
Australian government tens of thousands of dollars a month, at
its current download rate of around 3 TB a month.
"It is good, however, to see that the government has seen fit
to support a local company, which can only be positive for the
state and the industry," Raffen said.
With none of the applicants or outsourcing agency FutureICT
willing to talk about the tender process, it's hard to get a
clear view of what's happening but it seems that Internode would
be the only South Australian company so far to win any of the
AU$1 billion business on offer across the dozen or so state
Other winners of the FutureICT contracts -- as reported by
ZDNet Australia last week -- are:
- Mainframe contract to remain with EDS until 2007
- PCs to HP, Dell and IPEX
- Laptops to Dell and Acer
- File servers to HP
- Managed network services for both core services and
agencies to Queensland firm Dimension Data
- PABX maintenance support to NEC
- Messaging to Telstra
- Distributed computing support services to Volante