Home Business Telecommunications Vic Govt claims big savings from new telecoms contract

Vic Govt claims big savings from new telecoms contract

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

The contracts are said to 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, is claimed to introduce “market contestability” and to provide a boost to Victoria’s growing telecommunications industries.

“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,” said Special Minister of State Gavin Jennings in a statement.

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

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 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,” said Jennings.

The new contracts come into effect on 1 February.


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Stan Beer


Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.