O2 is set to challenge Vodafone’s dominance in the public sector telecoms market after winning a place on the Government’s £17bn Public Services Network (PSN) framework contract.
As a PSN framework supplier, the operator will be able to bid for millions of pounds of public sector work covering mobile voice and data, unified comms and other ICT services over the four-year framework deal.
O2 business director Ben Dowd (pictured) said the framework opened up significant opportunities in the public sector to the operator. Government spending on mobile and unified comms is estimated to be worth around £4bn over the four-year life of the framework deal.
Dowd claimed the PSN framework contract opened up the public sector field to new competitors, allowing O2 to win business from the area’s dominant players such as Vodafone and BT. He said: ‘O2 has everything to gain. We are the new kids on the block. We are the disruptor. This is not a retentions game for us so we have everything to gain. In the current economic climate there are councils out there looking to cut 30% of their budgets and we can help them do that.’
The PSN programme aims to deliver savings of £460m per year on the Government’s £17bn annual ICT costs. Dowd said O2 was already in competition with Vodafone and Everything Everywhere under the new framework deal, bidding for ‘multimillion-pounds worth of contracts,’ with some deals involving bases of more than a million mobile numbers. He added: ‘These are mobile deals coming out of contract in the public sector that are significant in terms of the size of the base.’
O2’s business director said O2 Unify, the joint venture between the operator and 2e2, would play a key role in targeting public sector unified comms deals. He pointed to its track record in its first year, which has seen it win major deals with large corporate businesses including a three-year contract with Network Rail, as evidence of its ability to deliver services into major organisations.
He said: ‘O2 Unify has delivered exponential growth, winning over £100m of contracts within the first year. That combination, along with our mobile voice and data solutions, means we can lay down a very strong challenge to Vodafone as the incumbent.’
He added: ‘O2 Unify delivers managed services into large enterprise organisations. We can help transform networks and deliver cloud services, bringing savings on capex and delivering opex capability.’