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BUSINESSDESK: The government has cut $12 million a year from its mobile phone bill after tying up the three major players in a public sector-wide deal.
Telecom's Gen-I, Vodafone New Zealand and Two Degrees Mobile have signed up to an all-of-government procurement contract that will reduce bill for mobile voice and data services by $60m over the next five years, Economic Development Minister Steven Joyce said.
"We are continuing to show the substantial negotiating power of government when procuring for all-of-government services," he said.
"Mobile voice and data services are a significant cost for government so these new contacts are a great result."
The new procurement agreements across the entire public sector have achieved annual cost reductions of some $23m for the office equipment and passenger vehicle procurement, $18m from the legal advice and $10m from air travel.
Mr Joyce said the latest contract will take total savings to some $350m.
The Government Procurement Reform Programme, managed by the Ministry of Economic Development with the Department of Internal Affairs, is also developing contracts for banking services, energy management, advertising, travel management and recruitment.
The recruitment tender is looking to trim $69m a year from the government's annual $230m spend on recruitment agencies.