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Government trims $60m off mobile bill through telco ménage à trois

Gen-i, Vodafone and 2degrees have signed up to a deal that will slash the government's mobile bill by $60 million over the next five years.

Gen-i, Vodafone and 2degrees have signed up to a deal that will slash the government's mobile bill by $60 million over the next five years.

The all-of-government procurement contract across the whole public sector will reduce mobile voice and data services costs, which are a "significant" line in the budget, according to economic development minister Steven Joyce. They include all voice minutes and data used on mobile phones held by government employees.

The new contracts are part of a public-sector wide Government Procurement Reform Programme aimed at making government buying as efficient as possible and reducing costs. It includes all public sector agencies, councils and up to 2500 schools.

The 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 contracts will mean we have achieved an estimated total saving of $350 million from the seven contracts that have been completed to date,” Joyce said.