The South African division of global ICT company Marconi Communications has been awarded a tender by Transnet`s telecoms division, Transtel, for the supply of flexible multiplex equipment.
Five bidders expressed their interest in the tender - with Ikwezi Maintenance and Communications, Saab Grintek, KeyNote Trading and Investments, and Isicamtho Communications losing out.
Transtel`s manager of tenders, Vernon Kretzschmar, says the two-year contract mandates Marconi to supply equipment to the state-owned Transtel "as and when requested".
"Under the terms of the contract they [Marconi] will supply the equipment at certain prices and under certain conditions," he explains.
It is understood the tender is for the supply of time division multiplexing equipment and associated interfaces for digital transmission over radio, including coaxial tubes, physical pair or optical fibres.
Michael Nutall, head of Transtel`s transmission networks, earlier described the contract as a "multimillion-rand capex project". A source within Transtel, who declines to be named, expects it to be worth at least R15 million for the two years.
Kretzschmar explains the reasoning behind awarding the contract to Marconi, saying: "We accept the technically-compliant lowest offer [in terms of per unit pricing]."
Ericsson takeover
In February, telecoms giant Ericsson increased its interest in Marconi SA to 75%. The remaining 25% rests with local empowerment company African Renaissance Holdings.
BBC News reported late last year that Marconi had agreed to sell the bulk of its assets and name to Swedish firm Ericsson in a deal worth about lb1.2 billion (R16.4 billion), leaving the UK division with its services business, which will be renamed Telent.
"Most of the international operations have been rebranded Ericsson, and Marconi Communications SA is in the process of making that change - which should be complete by the end of the year," says Marconi SA MD Richard Bicker-Caarten.
He assures the changeover from Marconi to Ericsson will have no material impact on business with customers.
Marconi, part of the African telecoms landscape since 1957, focuses on customer premises equipment such as telephones, modems, PABX systems and payphones.
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