Brazil state telco inks US$95mn contract with IT agency

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Monday, March 20, 2017

Brazil's state-run telco Telebras has signed a contract worth 292mn reais (US$94.5mn) with the federal IT agency, Dataprev, responsible for processing social security payrolls.

Telebras will interconnect the social security network across the entire country, including branches, regional offices and partner entities. In all, Dataprev's network is made up of over 1,700 active data communication circuits connected to its datacenters.

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According to the country's science, tech, innovation and communication ministry (MCTIC), the contract will be in force for five years and the agreement may result in additional projects involving both companies.

Dataprev still has contracts in place with private operators which will be migrated to the new Telebras network during this year, MCTIC said. "We expect the migrations to conclude by December and for Telebras to take over," Dataprev technology and operations director Daniel Darlen told Convergência Digital. We're not breaking a contract, rather it's a gradual migration of the current contracts to the Telebras contract."

This is the second contract signed between Dataprev and Telebras.

In July, Telebras was hired by Dataprev to provide a dedicated internet network and a solution for distributed denial of services (DDOS) attacks at its datacenters in Brasília, Rio de Janeiro and São Paulo as part of a 12-month contract for 2.1mn reais.

At the time, it was the first contract signed by Telebras since former President Dilma Rousseff issued a decree, in late 2013, in the aftermath of the US espionage scandal, stating that specific data of national interest should travel solely through national networks.

The measures also exempted the need for tenders in the selection of particular IT or telecoms services in order "to ensure national security."

While the Temer administration seeks to move away from giving exclusivity to national firms, the new contract represented a setback for private telcos, as four of them took part Dataprev's tender process: Embratel, Telefônica, Oi and British Telecom.

"We had a bidding process to replace the links and Telebras offered serving all of them in an integrated way and under a single contract with us. We stressed that the main thing was to maintain the quality and not increase the current contract's price, and ideally it reduce it somewhat," Darlen added.