The government has cut $12 million a year from its mobile phone bill after tying up the three major players in a public sector-wide deal.
Telecom's Gen-I, Vodafone New Zealand and Two Degrees Mobile have signed up to an all-of-government procurement contract that will reduce bill for mobile voice and data services by $60 million over the next five years, said Economic Development Minister Steven Joyce.
"We are continuing to show the substantial negotiating power of government when procuring for all-of-government services," Joyce said. "Mobile voice and data services are a significant cost for government so these new contacts are a great result."
The new procurement agreements across the entire public sector have achieved annual cost reductions of some $23 million for the office equipment and passenger vehicle procurement, $18 million from the legal advice, and $10 million from air travel.
Joyce said the latest contract will take total savings to some $350 million.