Don’t give Telkom R744-million broadband contract without a tender: Vodacom, Cell C

Vodacom and Cell C have reiterated that the government cannot give Telkom a R744-million contract to roll out a broadband network without a tender.

By - February 21, 2016 Share on LinkedIn
Telkom shadow logo

Bloomberg recently reported that Telkom is close to reaching an agreement with the government to start the first phase of its R744-million, three-year broadband roll-out plan.

According to the report, there have been extensive discussions about the contract between Telkom and the government.

“Telkom has carried out site inspections and studied how to implement the plan in eight districts,” stated Bloomberg.

Business Times has now reported that Vodacom and Cell C have warned that the government should follow a regular tender process for the project.

Many South African telecoms companies have the capacity to roll out the network, and, according to the report, a tender process is needed to ensure the government gets the best value.

In his recent State of the Nation Address, President Jacob Zuma said the government will fast-track the implementation of the first phase of the broadband roll-out to connect more than 5,000 government facilities in eight district municipalities over three years.

Zuma said R740 million has been allocated in this regard.

After his 2016 SONA address, the government said it hasn’t yet selected the “lead agent” for the broadband project, despite indications that Telkom could win the deal.

Where the Telkom debacle began

Zuma announced in 2015 that the government had decided to designate Telkom as the lead agency to assist with the broadband roll-out.

The announcement caused concern in the DA, which asked why the project wasn’t put out to an open tender – especially as the government owns a large share in Telkom.

The government backtracked on the “decision” to use Telkom for the project, and in its most recent comments said “due process” will be followed.

Department of Telecommunications and Postal Services spokesperson Siya Qoza said they are “following due process to facilitate the roll-out of broadband for Phase 1”.

The full report is available in the Business Times of 21 February 2016.

More on broadband

Telkom close to starting R744-million Government broadband plan: report

Here are the ADSL ISPs which South African techies use

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you think Brexit will benefit South Africa?

View Results

Loading ... Loading ...

More News

Oakbay confirms disciplinaries at ANN7

ANN7 logo

Oakbay Investments, the holding company of television station ANN7, has confirmed disciplinary proceedings at the company.

We are all living inside a computer simulation – here’s how it works

VR sex

In a recent interview, technology entrepreneur Elon Musk suggested we are living inside a computer simulation.

ANC is more powerful than ever

Jacob Zuma in Germany speaking

“We are not playing, do you hear me? We are the future of South Africa, we built South Africa,” said President Jacob Zuma at a recent ANC event.

Most reliable car brands in the world for 2016

Kia Serato

J.D. Power’s 2016 U.S. Initial Quality Study has revealed the most reliable car brands in the world.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
×