Sydney advertising tender at risk
Sydney’s local government authority may cancel its $300m (£161m) out-of-home (OOH) advertising tender and instead run its street furniture network itself.
Friday, 03 May 2019 15:32 GMT
The City of Sydney is considering cancelling its $300m advertising tender
OOH firm JCDecaux has held the City of Sydney contract since 1997.
The announcement comes after a disagreement with JCDecaux over the upgrade of Australian mobile phone provider Telstra’s payphone network. A lack of competitive bids was also a contributing factor to the decision to potentially withdraw the tender.
Last month, the City of Sydney – the local government authority for central Sydney and its surrounds - also disputed similar plans to install a new kind of payphone across its city area using land access powers under the Telecommunications Act 1997.
The City of Melbourne also rejected a bid by JCDecaux to install ad screens on 81 giant payphones around the same time.
Speaking to the Australian Financial Review, a council spokesperson says: “Due to changes in market conditions, City staff have recommended a cancellation of the current proposal for the contract, as we strive to achieve the best outcome and return of investment for ratepayers.”
Due to changes in market conditions, City staff have recommended a cancellation of the current proposal for the contract”
Sydney councillors are to meet to discuss the possibility of giving City of Sydney chief executive Monica Barone the authority to negotiate contracts for street furniture and advertising independently.
The Australian Financial Review reports that the $300m contract also included tens of millions of dollars of capital expenditure to bring the network up to date, via the digitisation of billboards and the addition of Wi-Fi connection.
Speaking to the publication, the council spokesperson adds: “The City of Sydney remains committed to securing a provider for its street furniture, out-of-home advertising and WiFi services.
“A report to be considered by council recommends declining a proposal for street furniture, out-of-home advertising and WiFi services following the completion of an extensive tender process.
“The report also recommends the City of Sydney’s CEO be given authority to explore alternative options to deliver these services.”
A decision about the tender is to be made on May 13th.
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