Who shares the Spanish State’s Telecom contracts?

25 September, 2019
Telefónica, Vodafone and BT were the awarded companies of the four main batches of agreements for consolidated Telecom services of the Spanish Central Governance Phase II. This document defines the operators or companies in charge of supporting the main public entities and organisms in terms of communication between 2020 and 2023. This agreement amounts to 239 million Euros.

Voice, data and Internet services for the Spanish State

The tender specifications issued by the General Department of Digital E-Governance of the Spanish Ministry of Finance on last January, specified that the procedure intended to select the companies which will provide voice, data (fixed and mobile) and Internet services.

Who shares the Spanish State’s Telecom contracts?

Commission for Public Administration Reform

This service agreement is the second phase of a model implemented in 2013 as a result of a report prepared by the Commission for Public Administration Reform, which recommended to modify the traditional telecom system of the Spanish Government and their dependent bodies. In particular, the Commission recommended not to hire services separately.

To summarise, they recommended a centralised procurement to unify systems to avoid technical and management issues and create a single and joint corporate telecom network to improve their efficiency and streamline its performance.

How are the batches of the agreement distributed?

After the announcement of the contract award, the awarding company distributes the four batches of the agreement as follows:

  • Vodafone: mobile communications.
  • BT: international calls.
  • Telefónica: Landlines and Internet.

All the awards are based on the same criterion, that is, being the offer with the best value.

BT and its possible sale

Given the possible sale of BT España, it is remarkable that the international call batch was awarded to this company. They made an offer of 39.9 million Euros and won the tender against Telefónica, whose offer was close to 44 million Euros.

Entry into force and implementation

All agreements of this second phase are expected to enter into force on 1 March 2020, with an implementation period of just over three years, until 10 September 2023.

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