Dan Peters 24 May 2017

Sector fury at Vodafone backtrack

Telecoms giant Vodafone has ‘annoyed’ councils by back-tracking on plans to unbundle its services while hiking prices at the same time, The MJ has learned.

Nearly 600 public sector organisations that use the GSi Convergence Framework (GCF) contract to purchase many of their important IT services, including secure email, had been preparing for the end of their Vodafone contract between December 2016 and March 2017.

In a blog last year, category lead at Crown Commercial Service, Tony Brown, suggested the unbundling would give public sector organisations increased flexibility and save them money.

However, The MJ understands that Vodafone has since decided to only sell its core services as a bundled set because they are ‘too interdependent for unbundling to make financial sense’ for the firm, which rakes in millions of pounds a year in revenue from the deal.

In addition, it is believed Vodafone rolled on the contract for an additional two years while increasing its prices by up to 100% in some cases.

One local government source said: ‘Many councils had a desire to move on but now cannot. It’s going to cost every council in the country tens of thousands of pounds.

'Some councils are so annoyed they’re even talking about moving all their contracts away from Vodafone – even unrelated ones.’

Vodafone declined to comment.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Education

Knowsley Metropolitan Borough Council
£87,117- £93,978
Knowsley Council is an award-winning Local Authority, named Local Authority of the Year in the Municipal Journal Awards 2024. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Service Managers – Children's Social Care

Knowsley Metropolitan Borough Council
£61,863 - £67,592
Knowsley Council is an award-winning Local Authority, named Local Authority of the Year in the Municipal Journal Awards 2024. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Head of Commercial Services

Trafford Council
£77,339 - £83,714
Few boroughs have a story quite like Trafford’s. Trafford, Greater Manchester
Recuriter: Trafford Council

Head of Greater Manchester Shared Services

Trafford Council
£77,339 - £83,714
Few boroughs have a story quite like Trafford’s. Trafford, Greater Manchester
Recuriter: Trafford Council

Director of People and Organisational Culture

Sheffield City Council
£Competitive
Sheffield is a place like no other. Sheffield, South Yorkshire
Recuriter: Sheffield City Council
Linkedin Banner