New Zealand Post expects to have short-listed respondents to its network-as-a-service tender by August 22, and to make a final decision and begin contractual negotiations by September 23.
The last time network services were put out to tender was in 2003. Network services have gone down in pricing since 2003, according to New Zealand Post.
The current spend is around $19.2 million per annum, excluding mobile services and data. “We are looking to make savings on our current spend. However, I can't comment on specifics given we are still in the middle of the process,” said a New Zealand Post spokesperson.
The current suppliers are primarily Gen-I and Telecom. NZ Post also uses Vodafone and a small set of sub-contractors for various network services.
New Zealand Post said in its request for proposal that with many different network services providers and no cohesive design, understanding and renegotiating network costs is complex and time consuming.
“The network services area represents the most accessible opportunity for large-scale operational cost savings.”
NZ Post also said in its request for proposal that a large amount of its existing network equipment is "technologically obsolete", preventing the rollout of modern services.
"New Zealand Post delivers up to seven different network connections at some sites. New technology allows consolidation of physical links into sites and better manageability to lower costs and improve services that are delivered electronically over the network."