The WAN project started in June and is scheduled for completion by January 2007.
Board of Studies IT director Mitra Bhar said the department needed a managed solution that meets its performance and service level specifications.
The contract also includes managed firewall and intrusion detection and will prepare the network for IP telephony to be deployed within 12 months.
"We looked for a solution that could not only integrate our future planned initiatives - including VOIP - but also unified messaging," Bhar said. "The NSW Board of Studies is also looking to install wireless networking to reduce costs and provide greater flexibility in extending network access at temporary sites."
The Board of Studies intends to integrate its voice and data networks in order to reduce costs and improve the quality and availability of the services it offers to schools and students.
"We also believe that integrating telephone functionality with PCs will enable us to provide videoconferencing services [with] the interoperability of voicemail, e-mails and faxes," Bhar said.
The Board of Studies previously chose NetStar to provide managed WAN and security services back in 2000.
NetStar Australia's managing director, Chris Meager, said the company is delighted to be partnering with the NSW Board of Studies again to refresh its WAN and prepare its network for VOIP.
Bhar said the Board of Studies looked at other suppliers but chose NetStar because of its experience and price.
Financial details remain "commercial-in-confidence," according to the Board of Studies chief media officer, Rebecca Lloyd.