Telstra gets five-year AU$1 billion contract renewal with Department of Defence

Telco dubs the contract as the largest ever for Telstra Enterprise.

By Chris Duckett | November 3, 2021  
https://www.zdnet.com/article/telstra-gets-five-year-au1-billion-contract-renewal-with-department-of-defence/


Telstra has extended its arrangement with the Department of Defence, gaining a 
five-year AU$1 billion contract renewal. The telco said the deal was its 
largest ever for Telstra Enterprise.

The contract has options for Defence to extend the contract multiple times for 
up to three years.

The deal includes a Wi-Fi 6 rollout, 5G connectivity, SD-WAN, and other 
software-defined networking elements.

"We are very pleased to extend and deepen our partnership with the Department 
of Defence and use our unique sovereign capabilities, decades of experience, 
and cutting-edge technology to co-design solutions for today and into the 
future," Telstra CEO Andy Penn said.

Telstra added it currently works with over 30 local suppliers to provide around 
AU$50 million of technology and services each year to Defence.

In 2013, Telstra picked up an initial six-year contract with Defence worth 
AU$1.1 billion to build a new terrestrial communications network for the 
department.

Last week, the telco announced it would acquire Digicel Pacific.

For a total cost of $1.6 billion, Telstra said it would be contributing $270 
million, with the Commonwealth to stump up $1.33 billion via "combination of 
non-recourse debt facilities and equity-like securities". Telstra said it would 
have 100% control of the entity and has preferred equity over the government.

Telstra said the Commonwealth made the initial approach.

Also on Wednesday, Telstra announced a AU$100 million deal with the Victorian 
government to provide 1,600 public schools with 1Mbps of connectivity per 
student. This would see the schools receive between 40Mbps and 3Gbps from an 
aggregated bandwidth pool of 870Gbps.

Telstra said it would spend AU$40 million of that amount on capital works to 
improve connectivity, particularly in regional and remote areas, and has 
already completed work at 700 schools.

"Telstra's $40 million investment in high-speed broadband connectivity won't 
just benefit Victorian schools, but the wider community, by laying the critical 
groundwork for flow on benefits to 4G and 5G mobile networks," Telstra 
Enterprise group executive David Burns said.

Updated at 11:44am AEDT, 3 November 2021: Added Victorian schools deal.
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