The Motley Fool

Telstra wins $450 million Queensland contract

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.

With its legendary, fully franked 28-cent dividend, Telstra is the darling of Aussie investors. But with its share price skyrocketing over the past year, is Telstra past its prime? Click here for our brand-new report: “Is It Time to Sell Telstra?”

More reading

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

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.