B -- HUNGARY: NOVACOM POINT-TO-MULTIPOINT MICROWAVE NETWORK PROJECT FEASIBILITY STUDY

Notice Date

December 18, 2000

Contracting Office

USTDA, 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131

ZIP Code

22209-2131

Response Due

January 19, 2001

Point of Contact

POC -- Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009

Description

The Grantee invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for Novacom, a private Hungarian communications company, on the development of a point-to-multipoint (PMP) microwave network project. Novacom currently operates a modern fiber-optic network for data communications in Budapest, and is strategically positioned to offer voice communications services once the market is liberalized in 2002. Novacom will be bidding for 3.5 GHz and 26 GHz frequency licenses from the government to provide voice, data and Internet services for residential, small and medium-sized business customers. In providing services under the new licenses by utilizing its existing fiber-optic network, Novacom will use PMP microwave access technology. The feasibility study would examine technical solution and recommend the most appropriate equipment and services for project implementation in advance of the bid. Novacom desires to have the study completed prior to bidding, in order to define its strategy from a technical and financial perspective. Novacom was founded in 1997 and currently is capitalized at $4.3 million. Its management is entirely Hungarian. Shareholders include RWE Telliance, Telekommunikationsholding S dwest GmbH, and the Budapest Electricity Works Company (ELMU). Novacom has built up one of Budapest's most up-to-date optical trunk networks by utilizing ELMU's existing infrastructure and rights-of-way. Novacom is extending its countrywide backbone network to enhance its provision of nation-wide services. Customer access drives the Hungarian communications industry. Having last mile access to customers is a differentiating factor among data communication providers. Novacom sees the PMP microwave technology as one of the most cost-effective and flexible access solution for its existing Budapest fiber-optic network and its to-be completed nation-wide backbone. Novacom therefore intends to bid for as many licenses as possible. The feasibility study would have four major components/tasks: 1. Technology partner identification/initial specification 2. License financial valuation 3. Competitive analysis / Market model 4. Bid strategy / Technical model The U.S. firm selected will be paid in U.S. dollars from a $127,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA). The Grantee will provide $127,000 worth of in-kind services to assist the selected contractor in executing the feasibility study tasks. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission report are available from TDA, at 1621 N. Kent Street, Suite 200, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English directly to the Grantee by 4:00 PM on January 19, 2001 at the above address. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals.

Record

Loren Data Corp. 20001220/BSOL005.HTM (W-353 SN5091D5)