Telstra wins $450 million Queensland contract

Telstra will design, construct, operate, and maintain QLD’s new wireless network.

Telstra (ASX: TLS) announced today that it’s helping the government go wireless. The telecommunications company has been selected by the Queensland government to design, construct, operate, and maintain its new wireless network. The contract clocks in at $453.7 million, and serves as a necessary investment in anticipation of G20 meetings and the 2018 Commonwealth Games.

According to Telstra Chief Customer Officer Gordon Ballantyne, this latest move will vastly improve the government’s communications infrastructure, allowing public safety agencies to communicate better, faster, and safer than before.

“This project will result in long-term benefits designed to support public safety agencies and communications security,” said Ballantyne in a statement today. “We look forward to working closely with the Queensland government to finalise the agreement and roll out this very important project. It is a great step for the people of Queensland towards improving communications for critical community services.”

Foolish takeaway

Government contracts offer some of the most stable sales around, and this latest announcement is another win for Telstra’s staying power. The company beat out NYSE-listed CSC, as well as Leighton Communications (ASX: LEI) to win Queensland’s contract.

Telstra’s no stranger to government work, either, having signed a massive $1.1 billion deal in April to supply its services to the Department of Defence. The company recently restructured its offices with current defence operations in mind, and undoubtedly with an eye towards potential future projects. The company also has deals with the Australian Customs and Border Protection Service, and even Victorian government firefighters. All customers are not created equal, and this latest win lends both size and sustainability to Telstra’s growing client base.

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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