The principles of foreign telecom equipment suppliers cutting-off in public procurement became known

Due to a number of factors the last 20 years in Russian Federation were marked by lack of the development of software and hardware equipment for telecom.

The main principles of foreign telecom equipment suppliers cutting-off in public procurement stated in the presentation of the Russian Federation Deputy Minister of Communications Alexey Sokolov November 27, 2015, as wrote TAdviser.

The interdepartmental working group of Ministry of Telecom and Mass Communications and Ministry of Trade coordinates this works. The Ministries intend to implement a number of initiatives. The “odd man out” principle means to restrict the admission of foreign manufacturers of telecom equipment in municipal and state procurement, in the presence of two or more proposals of goods of Russian origin. The preference providing means that participants with proposals of goods of Russian origin in municipal and state tenders will be granted the 15% discount. According to initiatives the mandatory testing according to procedures developed by the Ministry of Communications in conjunction with the Ministry of Industry and with the participation of relevant agencies, to ensure the information security of the Russian Federation Unified telecommunication network must be done. The mechanism of preference for domestic telecommunications equipment similar to the mechanism implemented for the domestic software must be created in cooperation with the Ministry of Industry.

The restrictions proposed by the Ministries, apparently, will apply to both government agencies and state-owned companies. The document’s draft of a 15% preference is already published on the legal acts public discussion portal and applied to competitions, auctions and requests for quotations for the purchase of software, hardware and services of all state-owned corporations, state-owned companies, and natural monopolies.

The limitation of foreign software procurement law applies only to public authorities, but December 22, 2015 Russian President Vladimir Putin supported the proposal of the IT industry to limit the public procurement of foreign software would apply also to state-owned companies.

The CEO of RDP.RU Sergey Nikulin said: “Due to a number of factors in the Russian Federation over the past 20 years there was no development of its own software and hardware for telecom equipment. The exception were the companies, partially occupying the limited market of telecom devices, which were solving specific problems related to the security agencies, as well as OEM-manufacturers, who were engaged not so much in the development, but the import and adaptation of foreign decisions. The wide markets of routers, switches, equipment for cellular networks, wireless equipment were almost totally lost and occupied by foreign vendors.”