Vodafone wins major NZ Post tender

Vodafone NZ CEO Russell Stanners

NZ Post today confirmed Vodafone won a major network services tender.

On May 22, NBR reported that inside NZ Post it was already considered a done deal, with Vodafone engineers already working on new NZ Post projects.

It looks like a solid win for Vodafone, which bought TelstraClear in October 2012 with the aim of boosting its corporate business.

The five-year network services contract covers the complete redesign and roll out of a range of services including office and wide-area networks, wi-fi, telephone calls, video conferencing and security services.

Neither party put a price on the deal.

But at the time of its initial request-for-proposal, in November 2012, NZ Post said it was looking to streamline multiple services from multiple providers (the largest being Telecom) with the aim of simplifying and modernising its telecommunications and networking setup — which has been costing it more than $19.2 million a year to run — into a network-as-a-service (NAS) model.

An NZ Post spokeswoman refused to put a price on the contract, but did say it represented a "a significant cost reduction" on the current $19.2 million spend.

NZ Post CFO Mark Yeoman echoed this theme in a statement, saying “New Zealand Post was looking for flexibility, innovation and significant cost reductions as part of its five year business strategy.

“We have entered a partnership with Vodafone because we believe that their approach to a service based model best fits the way that we need to operate in the future.

“The current New Zealand Post IT network is complex and difficult to manage.  New Zealand Post was looking for a way to improve efficiency, take advantage of current-day technology, reduce cost, and easily flex the network as its business changes.” 

“We will implement an innovative service-based model focusing on business outcomes rather than underlying technology,” says Vodafone NZ CEO Russell Stanners.

The service will be rolled out between now and the end of next year. 

ckeall@nbr.co.nz

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