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Telefónica adds three lots of the Madrid contract for 34 million and Orange wins one

Date: July 24, 2024 Time: 07:30:21

It was another of the battles for a very relevant public client. And after months of procedures, Telefónica is emerging as the winner of three of the main lots of the Madrid City Council’s telecommunications ‘megacontract’ for the next four years for more than 34 million euros. For its part, Orange will control one of the relevant ones. This result occurs a few months after the struggle between both companies in a tender for Correos that ended with its cancellation after the one presented by the French appeal group.

In the Madrid contract that is still in force, and which in some of the lots has been extended for a few months while the final award was closed, Vodafone and, mainly, Telefónica are the successful bidders. Orange had been left out. The three major operators were called to the new contest, announced by La Información. However, the decisions of the Contracting Board, which were taken in recent weeks, slightly change the protagonists, although the owner of Movistar remains the protagonist.

As for many more juicy ones, Telefónica and Orange share one each. The first is left with the Internet access network and individual lines with 22.6 million euros with taxes – during the process the Gauls had to justify their offer at the request of the City Council as it represented a 42% cut on the budget bidding basis. The second will offer fixed voice and mobile communications services with 13.8 million. It was the only bidder.

This last package implies an important technological transformation of the capital’s City Council. As reflected in the specifications, the City Council is going to offer most of its employees mobile lines with voice and data – including the corresponding terminal – so that a large part of the fixed lines and terminals will be replaced by these “with the consi next savings on licenses.” Specifically, it is estimated that 5,000 fixed terminals will be needed; 20,000 mobile phones (200 high-end and 2,000 mid-range); 2,000 tablets, and 500 mobile data terminals, with a million mobile lines but without a linked device.

In addition to internet access, Telefónica will also be in charge of the security associated with communications – it was the only bidder despite the fact that it was opened to other companies beyond telecommunications – for 4.4 million euros and the supply of local users and networks of data processing centers for 8 million. In the latter, the company Italtel was excluded. The lot linked to the maintenance of an intelligent network for the City Council to provide special telephone services such as Police and Emergency services, numbers 900 and Line Madrid-010, remains vacant.

The comprehensive management of the contract – what is known in slang by the acronym SMO – will be in the hands of the consulting firm Vector Software Factory, which beat Fujitsu in the last round after the departure of Inetum and Applus Norcontrol. These works are carried out today by Deloitte. Más Madrid filed a complaint with the Municipal Office against Fraud and Corruption in which reference was made to alleged irregularities and lack of control by the consultant in the contract. Finally, the IAM ruled out any anomaly.

These award proposals raised by the Contracting Committee must be formalized soon. Last week all the documentation from the different companies was received. The process was going against the clock with many of these procedures carried out during the month of August. To try to unite all the lots and services, the City Council decided to unify the start date to next November. All will have a duration of four years -48 months-. Four of the lots of the current contract have been extended for eight months and another two months for this objective.

Post office, another assault

With this fight practically resolved, there is another big contract that is still in contention after the problems of a first attempt. This is the one proposed by Correos, worth almost 60 million euros. Last June, the public company decided to cancel the signing of this award to Telefónica. Previously, the Spanish public company opted against all odds to choose the owner of Movistar without resolving an appeal presented by Orange. Finally, he agreed with the latter and instead of taking the proceedings back to the moment before the signing, he canceled the process. The bidding has started again with a slightly lower starting price.

In recent months there has also been a dispute over another relevant contract in the telecommunications sector. Defense awarded Telefónica the creation of the ‘Development, training and testing center for military operations in cyber defense with 5G technology’ after expelling Vodafone. The latter filed an unsuccessful appeal and went to the National Court. Beyond these, the owner has won other contracts such as that of the Generalitat (86 million) or that of the deployment of a telecommunications network for Defense (104 million). For its part, Vodafone has just been left alone in the tender for bracelets to locate abusers.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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