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Telus Lands $176 Million Deal with Ottawa to Replace 80,000 Landlines with VoIP

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Telus has inked a $176 million, seven-year deal with the Federal Government to integrate VoIP communications, a move which will see 80,000 traditional landlines disappear.

Shared Services Canada says Telus will provide Voice over Internet Protocol (VoIP), instant messaging and desktop videoconferencing services.

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There are already 100,000 VoIP lines in use by the by Shared Services Canada. Five years ago, 120,000 employees were given the choice of a mobile or desktop line, in the National Capital Region.

Steven MacKinnon, parliamentary secretary to the Minister of Public Services and Procurement, said in a statement the upgrade will bring productivity tools for employees “to enhance productivity to deliver the programs and services Canadians deserve.”

The Federal Government earlier this week switched its mobile services to Bell in a $432.1 million deal, dropping Rogers, who said they were “disappointed” by the change. The six-year contract will provide services to 230,000 devices in over 100 departments, with Bell’s contracts providing more flexible rate plans and improved pricing, in particular flexible data plans which adapt to help prevent overages.

Rogers is named as the second place supplier if Bell can’t fulfill its needs, but a spokesperson for the latter told the Financial Post they have “the scale and resources to fulfill 100 per cent of the contract and we fully expect to do so.”

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