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 a procurement contract that will reduce the bill for mobile voice and data services by $60m over the next five years, says Economic Development Minister Steven Joyce.
"We are continuing to show the substantial negotiating power of government when procuring for all-of-government services," Mr Joyce said.
"Mobile voice and data services are a significant cost for government so these new contacts are a great result."
Mr Joyce said the contract will take total savings from new procurement agreements across the public sector - including councils and up to 2500 schools - to $350m.
NZN