Johannesburg, 28 Jun 2021
South Africa’s telco sector is celebrating the announcement by National Treasury that the country’s four primary telco operators can now bid on tenders to supply government with mobile communication services. For the past five years, the so-called RT15 contract for voice, data and SMS services has been held by a single provider.
The transversal contract is for uncapped data, voice and closed user group minutes, SMS and closed user group SMS. It includes mobile devices for bespoke packages from all service providers, although locally manufactured phones are to be included in the packages on offer. The contract also covers accessories such as earphones, power storage units and charging cables. Nic Chauke, Head of Sales and RT15 at MTN Business, says: “The advent of COVID-19 has challenged the telecommunications sector to be innovative in its offerings and present government with highly competitive rates.”
The official statement by National Treasury said: "Uncapped data has become more important in a COVID-19 environment where many more government employees have had to rotate shifts, work virtually and, at times, for longer hours than previously. The pandemic has shown that data is a crucial mobile service that can allow government to still provide its services in an abnormal environment.
“Telco providers have a key role to play in assisting government in various areas of operation, such as the deployment of data and devices for education, helping it deploy IOT initiatives such as smart metering and enabling other smart city and 4IR applications.”
This means state-owned enterprises and organs of the state can appoint the service provider of their choice based on merit, the only proviso being that ability to deliver is key. A state entity wanting to procure mobile communication services from one of the four nominated providers has to visit the National Treasury website and opt in, indicating their intention to procure the services through RT15. A letter will be issued by Treasury, indicating that they have opted in.
While RT15 2021 is a five-year term, ending in 2026, public sector entities can take out contracts for periods that suit them. The onus is on service providers to innovate in terms of solutions specifically tailored to government requirements, while also delivering on expectations from a network and infrastructure perspective.
“For instance, steep data prices came under the spotlight during lockdown, so providers are expected to be competitive in the rates that they offer to public sector,” says Chauke. “The ultimate aim of RT15 is to significantly reduce government technology expenditure, and we have an opportunity – and responsibility – to assist government in doing so.”
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