The Department of Health has awarded Australian telecommunications giant Optus a $33 million contract to provide critical communications services underpinning Australia’s Medicare and e-health systems, marking a significant vote of confidence in the carrier following recent cybersecurity challenges.
The three-year deal, with potential extension to six years, was confirmed through a contract notification posted on the government’s AusTender procurement website. The agreement consolidates Optus’s position as a strategic telecommunications provider to the federal government.
Under the arrangement, Optus will deliver what the company describes as “a fully managed Network-as-a-Service (NaaS) solution for the Department of Health, Disability and Ageing, supporting its digital transformation.”
The contract represents a consolidation of various telecommunications services previously spread across multiple arrangements. Optus has historically maintained substantial portions of the Health Department’s carrier contracts, but the new deal brings together disparate services under a unified framework.
The award comes as the Albanese government prioritizes securing core digital infrastructure supporting Medicare and broader e-health services. The telecommunications backbone provided under the contract will underpin the delivery of essential health services to millions of Australians.
The deal also signals renewed government confidence in Optus following a turbulent period for the carrier. The company was among several major Australian corporations targeted by Russian-linked ransomware attacks, drawing criticism from former Home Affairs Minister Clare O’Neil.
The cyberattacks resulted in the application of sanctions following what officials described as malicious raids on critical infrastructure providers.
Despite these security challenges, the Health Department’s decision to award the substantial contract to Optus suggests the government views the carrier as having adequately addressed previous vulnerabilities.
The Network-as-a-Service model allows the Health Department to access telecommunications infrastructure without the need for significant capital investment in physical network equipment, while ensuring reliable connectivity for critical health system operations.
The contract timeline provides flexibility for both parties, with the initial three-year term allowing for performance evaluation before potential extension to the full six-year period. This structure enables the government to maintain service continuity while preserving options for future procurement decisions.
