In a deal worth $1.1 billion, Telstra will integrate the Department of Defence’s tactical and satellite network with its fixed telecommunications.
A Defence spokesperson told Business Insider that the other companies who had bid for the tender were Fujistu, Optus and Dimension Data.
More than 300 jobs will be created by the contract, which Defence chief information officer Peter Lawrence said was part of wider strategic reforms throughout the department.
Defence hopes to select a partner for the next stage of its upgrade by the end of the year.
“There are no further upgrades pending this year. Our next major project is Centralised Processing for which we hope to select a partner at the end of this year,” the spokesperson said.
Telstra said it would deliver technology that could be used by Defence long-term.
“Telstra’s aim is to deliver technology that can become the backbone of Australian Defence for the next decade and beyond,” said Telstra boss David Thodey in a statement.
“We will create 350 new positions to help serve the contract, including recruiting some of the nations leading IT, network and security experts,” he said.
Defence has telecommunications networks at 430 sites across Australia, supporting around 100,000 users.
It is hoped that the project will improve network performance and meet capability requirements to 2023.