Apathy killing off interest in govt datacentres

Mistrust, lack
of resources 

Apathy hovers over
govt datacentres.

Thursday, Feb 27th

South Africa’s Telkom wins broadband tender court battle


An obstacle to South African telecommunications firm Telkom’s high speed broadband rollout has been ‘removed’ following the company’s victory in a key court case.

In November 2011, telecommunications equipment firms Huawei and Alcatel-Lucent won a multi-billion rand tender from Telkom to implement a Multi Services Access Node (“MSAN”) project, which helps to offer digital subscriber line speeds of up to 40 Mbps.

However, local firm ZTE Mzansi, which was also in the running for the contract, alleged that it had been disqualified ‘unfairly’ in Telkom’s tender process.

Telkom in turn argued that ZTE Mzansi was “not shortlisted because it failed to meet certain critical technical criteria during the evaluation process.”

ZTE Mzansi then took Telkom to court in March last year, which resulted in the latter being interdicted from implementing the tender.

Then, in May last year, the North Gauteng High Court granted Telkom leave to appeal to the Supreme Court of Appeal against the interdict. The decision from the North Gauteng High Court meant that that Telkom could continue its network upgrade.

The debacle, though, reportedly resulted in ZTE Mzansi burning its bridges with China’s ZTE, which owns 40% of its equity.

But in a statement released late yesterday, Telkom says that the country’s Supreme Court of Appeal has ruled in its favour regarding the tender process.

“Telkom’s procurement policy and process of applying it was upheld when the Supreme Court of Appeal today (18 March 2013) set aside the North Gauteng High Court’s interim interdict against the Company,” said Telkom in the statement.

“The appeal was upheld with costs,” the statement added.


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