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Telstra renews $1 billion contract with DoD

Telstra shares were unchanged on Wednesday despite announcing an agreement to renew its contract with the Australian Department of Defence to deliver critical network and telecommunications services.

The five-year contract, worth over $1 billion, will see Telstra continue to provide the Department with leading-edge technology and telco solutions.

The agreement will deliver significantly increased wireless coverage through a dedicated Wi-Fi 6 rollout program and the introduction of Telstra’s leading 5G mobile network capability for Defence personnel. It will also involve the introduction of full SDWAN and SDN capabilities to provide more flexible, self-healing and predictive network capabilities.

The contract includes the option for Defence to extend the contract for one or more periods of up to three years. It is the largest ever customer contract of its kind signed by Telstra Enterprise and contributes to Telstra’s previously communicated target of returning the Enterprise business to growth.

Telstra noted that the agreement will create significant opportunities for local industry. Its previous work with Defence has delivered a range of significant improvements that included transformed network infrastructure and mobility platforms, enhanced network performance, improved resilience and better collaborative tools and services.

Telstra CEO Andrew Penn commented. “We are very pleased to extend and deepen our partnership with the Department of Defence and use our unique sovereign capabilities, decades of experience, and cutting-edge technology to co-design solutions for today and into the future. Telstra is committed to working with the Australian Government to ensure a thriving and safe digital economy and society, including ensuring the Department of Defence and Australian Defence Force have access to world-leading technology.”

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