Doug on IP Comm – An independent voice on VoIP, telecom, and IP Communication

Common sense takes hold – Mitel won’t sue Ottawa over VoIP contract

Posted on: July 16, 2009

Mitel won’t sue the city of Ottawa over aVoIP contract award that went over to Bell Canada and Cisco, reports the Ottawa Citizen.

Issuing a statement yesterday,  the company said “Although Mitel has been advised that there are legal grounds to seek judicial review of the City’s decision, we have concluded that it would not be in the best interests of Mitel, the City, nor its taxpayers to proceed further with this matter.”

Last week, Mitel was threatening to sue the city of Ottawa, but after much review, the city decided to soldier on,  advised by its procurement people that Mitel’s protests were not valid and by its lawyers that Bell Canada and Cisco likely had the better case to sue if the procurement process — worth $7 million (CN) – was restarted.

Mitel invested significant time and energy trying to get a do-over for the Ottawa VoIP contract, first offering $2 million (CN) worth of VoIP phones as a “gift” in exchange for getting exclusive rights for it and its partners to supply VoIP services.  When that didn’t work, it withdrew the gift and started threatening to sue if the procurement process wasn’t overturned, as it started an extensive lobbying campaign that included hiring the former mayor of Ottawa to talk to city officials.


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