Vodacom sues police for switching to MTN [11:00]
Vodacom is suing the South African Police Service for moving its lucrative cellular contract tender to MTN,The mobile network operator has been the sole cellular services provider of the police for the past two decades.
Vodacom argued that the Saps committee that considered Vodacom and MTN’s bids had misunderstood the network operators’ different ways of reporting population coverage and network availability during load-shedding. According to Vodacom, the police mistakenly counted its admission against its bid. The committee had interpreted it to mean that Vodacom’s coverage had permanently declined to 86% due to load-shedding, while MTN’s had remained at 99.1%.
Availability refers to what percentage of the time a mobile network is available, while coverage refers to the percentage of the population that has access to a network.In addition to the issues raised around network availability, Vodacom said MTN was charging the police more for the contracts.RT15-2021 contractThe previous RT15-2016 contract — which was in effect from 2016 to 2021 — gave Vodacom the exclusive right to provide cellular services to government employees.
Civil servants must also be able to buy devices on contract with uncapped data at a maximum price of R500 per month.This should have disqualified MTN from consideration, Vodacom argued.
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