Fixed-line operator Telkom says its R13 billion network upgrade is back on track, after it won a bid to appeal a March North Gauteng High Court ruling that stopped work.
ZTE Mzanzi, the losing bidder for the network upgrade, argued the tender process was flawed and that it met all of Telkom's criteria, but was unfairly disqualified from the process.
The interim interdict prevented Telkom from moving ahead with its plans to roll out its Multi-Service Access Node (MSAN) project, which is designed to take fibre closer to the home.
Yesterday, Telkom said it had been granted leave to appeal the court decision and the matter will now be heard in the Supreme Court of Appeal, although a date has yet to be set. Telkom has until 22 June to file its appeal.
Telkom's MD of wholesale and networks, Bashier Sallie, says Telkom is “pleased that we can now continue the implementation of our access network revamp”.
Win-win
ZTE Mzanzi director Tumi Magasa says, although the company, minority-owned by ZTE SA, is doing the right things and defending what it believes is right, at least the sub-contractors involved can move ahead without their livelihood being affected.
ITWeb understands the tender was for a two-phased implementation. The first part - to replace the MSANs - is worth around R5 billion, while the second phase will move the entire network to IP. In total, the deal is worth around R13 billion over about five years.
Telkom awarded the MSAN tender to Huawei and Alcatel-Lucent Technologies last November, following a “fair, open and transparent procurement process”, it says. The tender was published last July and ZTE Mzanzi was not short-listed, as it failed to meet certain critical technical criteria during the evaluation process, says the fixed-line operator.
On 28 March, Telkom announced the first of 3 700 MSANs had been delivered as part of its plan to revamp its network and provide facilities for faster, more flexible services to customers.
ZTE Mzanzi's court bid was opposed by ZTE SA, which argued that ZTE Mzanzi did not seek its approval before going to court. ZTE SA last week attempted to sever the partnership, but failed on Friday when a court ruled against it.
Magasa says the parties will now go to Mauritius to arbitrate the dispute. He says ZTE Mzanzi still has ZTE China's support.
ZTE CEO Cris Fuentes was not immediately available and did not return a message left on Monday.
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