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Telecom misses out on $A45m contract in Australia

Optus takes four-year deal from Telecom subsidiary

By David Watson Auckland | Monday, 16 August, 2004

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Telecom's Australian subsidiary AAPT has lost its eftpos services account with Australia's Commonwealth Bank.

Rival Australian telco Optus has taken the business from AAPT, signing a four-year, $A45 million deal to run the bank's eftpos network.

AAPT spokesman Andrew Bristol says AAPT was informed two months ago about the change and is still running the eftpos network, with the transiton to Optus to take place shortly.

"We were running the eftpos system for the bank, on Optus' and Telstra's platforms."

The eftpos service was run under a separate contract from the major services contract signed by Telecom NZ Australia with the bank in 2000.

The services contract, which AAPT took over when TCNZA was merged with AAPT last year, ran for five years, was reputed to be worth up to $A100 million a year and involved infrastructure management, IP-based voice, data and video managed services, remote access, international network services and risk, security and performance managment.

TCNZA partnered with Cisco, ComTech and EDS on the deal, which ends in the second half of next year.

Bristol says AAPT is talking to the bank about possibly continuing to provide services after the contract expires, but says such a comprehensive contract might not be re-negotiated.

"The dynamics of the sector have changed since the deal was signed and it's been reported that the bank is unlikely to re-negotiate another whole-of-business contract," he says. "We're working with the bank to assess how we can best continue to work with them."

At the time of signing, the Commonwealth Bank deal was seen as a big win for TCNZA, which beat Telstra and Optus in a keenly contested tender.
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