100s of contractors lose out: Telstra gives $2.4b of work to just three

by Stuart Corner

Monday, 03 September 2007

Page 1 of 3 ! 100s of engineering service firms will lose significant business following Telstra's decision to rationalise the outsourcing of fault repairs, installations, civil works and construction work in its access network to just three players who between them will share $2.4 billion worth of business over the next four years. The big winners are Service Stream Limited, Visionstream and Silcar years. Their contract are for two years with a two-year extension option which, Telstra says "creates the potential to deliver up to $2.5 billion of work over the four years." It says the move "represents a significant consolidation of Telstra's access and associated services business from over 100 contracts with 100 vendors to just three...[and is] expected to yield a saving of approximately $140 million over the initial [two year] term." Telstra has not named existing suppliers but those known to have held substantial contracts in recent years include ABB, Alstom, Downer Connect and BSA. Telstra says it is "communicating with all of its existing contractors and is committed to working with them and the new vendors to transition into the new operating model over the coming months." Telstra Services group managing director, Michael Rocca, said: "Today's announcement is as much about working simpler as it is about being smarter in our partnerships. The contracts governing our work with these companies are groundbreaking in terms of the span of control and responsibility we're entrusting in them, and also in the dynamic and challenging performance measures we've built in to ensure quality, efficiency and scalability." However Telstra made similar claims about rationalisation in November 2003 when it announced new arrangements, known as Access Network Construction Contracts (ANCC). Telstra said it would "work with five companies over the next two years and seven months in routine access network activities including pre-provisioning, new estates provisioning, and just in time network provisioning." The five successful companies were ABB Australia; Alstom Australia; Downer Connect; Siemens Thiess Communications Joint Venture (now Silcar); Visionstream Australia." << First page <   1 2 3 Next page > Last page - Post your comment >>

 

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