The Commonwealth decision to deregulate the telecommunications market and introduce a competitor to Telecom/OTC has created a completely new telecommunications environment.

This change has also presented the NSW Government with an opportunity to take advantage of this situation by strategically positioning its network in this competitive environment.

The Telepower Survey of New South Wales Government telecommunications assets will be completed by the end of December and the Government will call tenders for the NSW Government Network in 1991. The tender process will be aimed at allowing maximum use of existing NSW Government telecommunications infrastructure, opening up major State development initiatives including the possibility of attracting NSW based second carrier and the provision of the most effective communications network for the Government.

To ensure the NSW Government obtains optimum leverage from the opportunity, it has been decided that:

All NSW Public Sector departments, agencies and Statutory Authorities (except State Bank and GIO) will be included as subscribers to the network in the tender for the NSW Government. Existing infrastructure in these Government bodies will be available to form part of the network.

Telecom (Megacom) will be excluded from being a prime contractor for the network. Potential bidders for the second carrier and foreign carriers will not be excluded from the tender. Mobile radio may be treated as a separate component of the tender.

During the establishment of the network it is essential that Government bodies should not enter into network or service contracts with Telecom or OTC with terms in excess of one year.

Government bodies should also not invest in telecommunications ,infrastructure (such as optical fibre, microwave links and coaxial cables but excluding PABX or modem equipment) above $1 million in 1991-92. Any proposed expenditure above 1 million should be referred to the Telecommunications Unit in the Commercial Services Group, Department of Administrative Services so as to ensure that such investments are consistent with the Government's network design and future evolution.

officers of the Telecommunications Unit will be in touch with your agencies over January and February so as to obtain further details of their telecommunications infrastructure in preparation to going to open tender. The prompt and full co-operation of your agencies to provide necessary information is requested-so as to allow the tight timetable to be met.

I should be pleased if you would bring this memo urgently to the attention of all agencies within your portfolio and would appreciate your assistance in ensuring co-operation with the above requirements.

Agencies may obtain further information by contacting Mr Gary Donald, Director of the Telecommunications Unit, on 286 7320.

Nick Greiner

Branch: IRB
Date: 31 Dec 1990