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.

SIGN UP
For your free daily news bulletin
Highways jobs

Executive Director of Corporate Resources (Section 151 Officer) & Deputy Chief Executive

East Riding of Yorkshire Council
£148,775 - £159,480
The role sits at the strategic core of the organisation East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Director Children’s Social Care (Family Help and Safeguarding)

Swindon Borough Council
£104,196 (plus pay award pending)
You’ll join a supportive and ambitious leadership environment, with strong corporate Swindon, Wiltshire
Recuriter: Swindon Borough Council

Quadrant Support Advisor

Essex County Council
£25959.00 - £28621.00 per annum + Pension
Quadrant Support AdvisorPermanent, Part Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Direct Payments Monitoring Officer

Essex County Council
£27869.00 - £32787.00 per annum
Direct Payments Monitoring OfficerPermanent, Full Time£27,869 to £32,787 per annumLocation
Recuriter: Essex County Council

Customer Services Assistant

Essex County Council
Up to £25959.00 per annum + full time equivalent
Customer Services AssistantPermanent, Part Time£25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council
Linkedin Banner