E-procurement Plans Save $10m/year

NSW government agencies expect to cut $10 million a year from phone bills as a result of new procurement processes.

The government has centralised its product and service procurement by establishing "community of interest" suppliers allowing agencies to choose from a range of providers.

Telecommunications suppliers are AAPT Ltd, Hutchison Telecommunications, Link Telecommunications, Macquarie Corporate Telecommunications, OneTel, Optus Networks, Telstra and Vodafone.

They will provide local, national long distance, fixed telephone and mobile calls as well as paging.

NSW IT Minister Kim Yeadon said the government is currently spending $150 million a year on non-mobile telecommunications services, adding ‘we have used this buying power to negotiate these savings.'Yeadon said longer-term savings could reach $30 million a year depending on the rate at which government agencies take advantage of the pricing arrangements.

Macquarie Corporate Telecommunications CEO David Tudehope said the government's decision to inject competition into the search for service providers is a positive shift away from ‘monolithic service provider agreements.'

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More about AAPTHutchisonHutchison Telecommunications (Aust)Link TelecommunicationsMacquarie Corporate TelecommunicationsNSW GovernmentOneTelOptusTelstra CorporationVodafone

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