Telecom NZ Group Welcomes Outsourcing Contract
TELECOM NEW ZEALAND GROUP WELCOMES OUTSOURCING CONTRACT WITH THE COMMONWEALTH BANK OF AUSTRALIA
The Telecom New Zealand Group said today it is delighted to have been selected by the Commonwealth Bank of Australia to enter into final negotiations to provide outsourced telecommunications needs, and to support the Bank’s online leadership position.
Telecom New Zealand Chief Executive Theresa Gattung said the agreement with the Bank will create the basis for an alliance of key players in the convergence of banking, telecommunications and information technology. “It gives powerful support to our Australasian-wide growth strategy and builds on Telecom New Zealand’s investment in the region,” Ms Gattung said.
Under the outsourcing arrangement, TCNZ Australia (TCNZA), a wholly owned subsidiary of Telecom New Zealand, will lead a consortium that provides the Bank’s telecommunications services including:
- an IP-anywhere network capability; - managed network services for data, voice, video and EFTPOS; - remote access and international network services; - consulting on all telecommunications requirements; and - risk, security and performance management.
The TCNZA led consortium, which includes AAPT, Com Tech and EDS, has substantial capabilities to add value to large customers’ use of telecommunications and IT.
Ms Gattung said “We will provide a single point of accountability, an infrastructure that evolves to serve the Bank’s needs, and a reduction in complexity of service definition which will enable faster delivery of banking products into the market.”
Ms Gattung said the Telecom New Zealand Group is able to draw on existing relationships with its world-leading partners, as well as its own capabilities and experience, to provide a broad range of opportunities to the Bank. The Bank and the Telecom New Zealand Group have both outsourced their IT services to EDS and so already have a high level of alignment in their IT strategies in the region.
“Our Group has the capabilities and the commitment to deliver substantial value to the Bank and to its customers as our business relationship is developed further,” Ms Gattung said.
“The Telecom Group has made a significant investment in securing the business, which is evidence of our commitment to a strong Australasian future,” she said.
The New Zealand Stock Exchange Market Surveillance Panel has granted Telecom New Zealand a waiver from Listing Rule 9.2.1 which concerns related party transactions. A meeting of the Company’s shareholders will not, therefore, be required to approve the arrangements with the Bank. The waiver was sought because of the level of payments anticipated under the contract from Telecom to AAPT (in which Telecom holds an 80 percent shareholding) and because EDS Australia is also a related party of Telecom. The Market Surveillance Panel is satisfied in this instance that this has not compromised the negotiation process.