Oulu Awards €12 Million Telecommunications Services Contract to DNA and Elisa

The City of Oulu has awarded a €12 million telecommunications services framework to DNA Oyj (Lot 1) and Elisa Oyj (Lot 2). The contracts cover regional network and internet connectivity (DNA) and LAN, WLAN, and telecommunications core services (Elisa) for the City of Oulu and its affiliated entities across the Oulu region.

Introduction

Modern cities depend on robust and reliable telecommunications infrastructure to deliver public services, support education, and enable economic activity. The City of Oulu, one of Finland's largest cities, has taken a strategic approach to securing its telecommunications services through a competitive procurement.

The contract, divided into two lots, has been awarded to two of Finland's leading telecommunications providers: DNA Oyj (Lot 1) and Elisa Oyj (Lot 2). With a total value of €12 million, the framework covers regional network and internet connectivity, as well as LAN, WLAN, and telecommunications core services for the City of Oulu and its affiliated public entities.

This procurement ensures that Oulu's public services—from schools to cultural institutions to municipal enterprises—have access to reliable, modern telecommunications infrastructure.

Why This Contract Matters

Telecommunications are the backbone of modern public administration, education, and community services. The City of Oulu's procurement ensures that its network infrastructure meets the needs of a growing, digitally connected city.

This contract matters because it:

• Supports public services: Provides reliable connectivity for schools, cultural institutions, and municipal enterprises
• Ensures digital transformation: Modern telecommunications infrastructure enables digital public services
• Covers multiple entities: Benefits 10 affiliated organisations including the City of Oulu, Oulun Tuotantokeittiö, Oulun Kulttuurisäätiö, and others
• Competitive process: 4 bids for Lot 1 and 6 bids for Lot 2 demonstrate healthy competition
• Long-term stability: 4-year framework with option for indefinite extension
• Balanced evaluation: Price (60%) and Quality (40%)

Contract Timeline

• Contract award notice published: 7 August 2026 (OJ S 151/2026)
• Previous notice referenced: d3f2eb84-46b9-4f77-aaac-2ce18f0cda42-01
• Contract concluded (Lot 1): 25 May 2026
• Contract concluded (Lot 2): 18 June 2026
• Coverage start date: Upon signature (4-year framework, option for indefinite extension)

Contract Overview

The City of Oulu's Digital and ICT unit conducted an open procedure for this procurement. The contract is divided into two lots, each awarded separately to a different supplier.

Key features include:

• Two lots: Lot 1 (Regional network and internet connectivity) and Lot 2 (LAN, WLAN, and telecommunications core)
• Duration: 4 years with option for indefinite extension (toistaiseksi voimassa oleva)
• Total value: €12,030,000
• Evaluation: Price (60%) and Quality (40%)
• Number of entities: 10 participating public entities
• Geographic scope: Oulu region (Pohjois-Pohjanmaa)

Key Contract Details

Detail	Information
Contracting authority (coordinator)	Oulun kaupunki (City of Oulu)
Participating buyers	10 entities (City of Oulu, Oulun Tuotantokeittiö, Oulun Kulttuurisäätiö, Svenska Privatskolan i Uleåborg, Oulun Pysäköinti, Kiertokaari, Potential Toimitilat, Oulun teatteri, Nallikari Seaside)
Winning bidders	DNA Oyj (Lot 1), Elisa Oyj (Lot 2)
Contract subject	Telecommunications services (CPV 72700000)
Procedure type	Open procedure
Legal basis	EU Directive 2014/24/EU
Total awarded value (EUR)	€12,030,000.00
Lot 1 - DNA Oyj value	€12,030,000.00
Lot 2 - Elisa Oyj value	€12,030,000.00
Framework duration	4 years + option for indefinite extension
Bids received (Lot 1)	4
Bids received (Lot 2)	6
EU funding	None
Covered by GPA	Yes
Evaluation criteria	Price (60%), Quality (40%)
Subcontracting	Yes (both winners), value/percentage not specified

Project Scope

The contract covers telecommunications services for the City of Oulu and its affiliated public entities across two lots:

Lot 1: Regional Network and Internet Connectivity (DNA Oyj)

• Service areas:
  • Regional network (Alueverkko)
  • Internet connectivity (Yhteys Internetiin)
• Awarded to: DNA Oyj
• Value: €12,030,000
• Bids received: 4

Lot 2: LAN, WLAN, and Telecommunications Core (Elisa Oyj)

• Service areas:
  • LAN (Local Area Network)
  • WLAN (Wireless Local Area Network)
  • Telecommunications core (Tietoliikenneydin)
• Awarded to: Elisa Oyj
• Value: €12,030,000
• Bids received: 6

About the Contracting Authority

Oulun kaupunki (City of Oulu) is a local authority in the Pohjois-Pohjanmaa (Northern Ostrobothnia) region of Finland. It is one of Finland's largest cities, known for its technology sector and high-quality public services. The city's Digital and ICT unit coordinates telecommunications and IT procurement for the city and its affiliated public entities.

Ten participating public entities are covered by the framework:

• Oulun kaupunki – City of Oulu
• Oulun Tuotantokeittiö Oy – Oulu Production Kitchen (public undertaking)
• Oulun Kulttuurisäätiö sr – Oulu Culture Foundation (public undertaking)
• Svenska Privatskolan i Uleåborg – Swedish Private School in Oulu
• Oulun Pysäköinti Oy – Oulu Parking (public undertaking)
• Kiertokaari Oy – Circular Economy company (public undertaking)
• Potential Toimitilat Oy – Potential Premises (public undertaking)
• Oulun teatteri Oy – Oulu Theatre (public undertaking)
• Nallikari Seaside Oy – Nallikari Seaside (public undertaking)

About the Winning Companies

DNA Oyj (Lot 1 – Regional Network and Internet Connectivity)

DNA Oyj is one of Finland's leading telecommunications companies, providing mobile, broadband, and enterprise network services. Headquartered in Kuopio, DNA is a major player in the Finnish telecommunications market. The company has extensive experience in providing network and internet services to public sector clients. DNA's winning bid for Lot 1 covers regional network and internet connectivity for the City of Oulu and its affiliated entities.

Elisa Oyj (Lot 2 – LAN, WLAN, and Telecommunications Core)

Elisa Oyj is Finland's largest telecommunications company, offering mobile, broadband, and enterprise ICT solutions. Based in Helsinki, Elisa is a market leader in the Finnish telecommunications sector with a strong track record in public sector contracts. Elisa's winning bid for Lot 2 covers LAN, WLAN, and telecommunications core services for the City of Oulu and its affiliated entities.

Procurement Analysis

• Procedure: An open procedure was used, allowing any interested economic operator to submit a tender.
• Competition: Strong competition was observed, with 4 bids for Lot 1 (regional network) and 6 bids for Lot 2 (LAN/WLAN/core).
• Evaluation criteria: Price (60%) and Quality (40%). This balanced approach values both cost and service quality.
• Split awards: The two lots were awarded to different suppliers (DNA and Elisa), ensuring specialisation and avoiding single-supplier dependency.
• Subcontracting: Both winners indicated the use of subcontracting, though the value and percentage are not specified.
• Framework duration: 4-year framework with an option for indefinite extension, providing long-term stability.
• Geographic scope: Oulu region (Pohjois-Pohjanmaa).

Additional Procurement Facts

• The contract is covered by the WTO's Government Procurement Agreement (GPA).
• No EU funds were used for this procurement.
• The procurement was not accelerated.
• No dynamic purchasing system was used.
• No framework agreement was used—this is a direct contract.
• Both winners indicated the use of subcontracting.
• 4 bids for Lot 1, 6 bids for Lot 2.
• Both winners are large Finnish companies (DNA Oyj and Elisa Oyj).
• Disputes or review requests fall to the Markkinaoikeus (Market Court) in Finland.
• The contract includes an option for indefinite extension after the initial 4-year period.

Market & Industry Perspective

The Finnish telecommunications market is dominated by three major players: Elisa, Telia, and DNA. This procurement reflects that market structure, with DNA winning Lot 1 and Elisa winning Lot 2. The participation of 4-6 bidders per lot indicates healthy competition.

Key trends in the Finnish telecommunications market include:

• Consolidation: The market is dominated by a few major players, but niche providers also compete
• 5G rollout: Next-generation networks are transforming public sector connectivity
• Digital transformation: Public sector demand for high-speed, reliable connectivity is growing
• Security: Cybersecurity and network resilience are key priorities for public buyers

The split award to two suppliers (DNA and Elisa) reflects a strategic decision to avoid single-supplier dependency and ensure redundancy.

Economic Significance

At €12 million, this contract represents a significant investment in telecommunications infrastructure for the City of Oulu and its affiliated entities. The contract ensures that public services—from schools and theatres to municipal enterprises—have access to reliable, modern connectivity.

For DNA and Elisa, the contracts provide stable, predictable revenue streams over the four-year period, with the potential for indefinite extension. Both companies are well-positioned to deliver the required services given their market leadership and experience with public sector clients.

Future Procurement Opportunities

With the contract now in place, future opportunities include:

• Contract extensions: The contract can be extended indefinitely after the initial 4-year period
• Technology upgrades: Potential for additional services as technology evolves (e.g., 5G, IoT)
• Re-tender: The contract will be re-tendered if the indefinite extension is not exercised
• Other Finnish cities: Similar telecommunications tenders are conducted by other Finnish municipalities

Opportunities for Suppliers

While this contract is awarded, future opportunities exist for telecommunications providers:

• Subcontracting: Suppliers not on the contract may find subcontracting opportunities with DNA or Elisa
• Other Finnish cities: Similar telecommunications tenders are conducted by other municipalities
• Technology upgrades: Emerging technologies (5G, IoT, AI) may create new opportunities
• Security services: Cybersecurity and network security are growing areas
• Re-tender: The contract will be re-tendered in the future—early preparation is key

What Businesses Should Watch

• Re-tendering of this contract when the indefinite extension is not exercised
• Similar telecommunications tenders from other Finnish municipalities
• Technology trends (5G, IoT, AI) in the public sector
• Cybersecurity and network security requirements
• Oulu's future ICT procurement notices

FinlandTender Procurement Intelligence

This telecommunications contract is a well-structured example of public procurement for network services. Several features stand out:

• Split awards: Two lots awarded to different suppliers (DNA and Elisa) ensure specialisation and avoid dependency on a single supplier
• Balanced evaluation: Price (60%) and Quality (40%) reflect a mature approach that values both cost and service quality
• Competitive process: 4-6 bidders per lot demonstrate healthy market competition
• Long-term stability: 4-year framework with indefinite extension provides continuity
• Broad coverage: 10 participating public entities benefit from the framework

The selection of DNA for regional network/internet and Elisa for LAN/WLAN/core suggests that each supplier demonstrated particular strengths in their respective service areas.

For suppliers, this procurement highlights the importance of:

• Competitive pricing: Price accounts for 60% of evaluation
• Service quality: Quality accounts for 40% of evaluation
• Specialisation: Bidding for specific service areas where strengths lie
• Regional focus: Understanding the Oulu region's needs

Supplier Takeaways

• Offer competitive pricing—price accounts for 60% of evaluation
• Demonstrate service quality—40% of evaluation is quality-based
• Consider bidding for specific service areas where you have strengths
• Establish relationships with Finnish municipalities for similar opportunities
• Monitor Oulu's future ICT procurement notices
• Be prepared for technology upgrades (5G, IoT, AI) in future tenders

Key Takeaways

• City of Oulu awarded a €12 million telecommunications contract to DNA and Elisa
• Lot 1 (Regional network/internet) won by DNA Oyj
• Lot 2 (LAN/WLAN/core) won by Elisa Oyj
• 10 participating public entities covered by the framework
• Evaluation: Price (60%), Quality (40%)
• 4 bids for Lot 1, 6 bids for Lot 2
• Framework duration: 4 years + indefinite extension option
• Both winners use subcontracting (value/percentage not specified)
• All winners are large Finnish telecommunications companies

Conclusion

This telecommunications contract represents a significant investment in the City of Oulu's digital infrastructure. By awarding the two lots to different suppliers—DNA Oyj and Elisa Oyj—the city has secured specialist services for both regional network/internet connectivity and LAN/WLAN/core services, while avoiding single-supplier dependency.

The balanced evaluation criteria (price and quality) ensure that the city receives both competitive pricing and high-quality services. The participation of 10 public entities under the framework demonstrates the value of collaborative procurement in achieving economies of scale.

As the framework runs for an initial four years with the option for indefinite extension, the City of Oulu and its affiliated entities will benefit from reliable, modern telecommunications infrastructure—supporting digital public services, education, and community activities across the region.

Frequently Asked Questions

Q: What is the value of the contract?

Ans: €12,030,000.

Q: Who are the winners?

Ans: DNA Oyj (Lot 1) and Elisa Oyj (Lot 2).

Q: What does Lot 1 cover?

Ans: Regional network (Alueverkko) and internet connectivity (Yhteys Internetiin).

Q: What does Lot 2 cover?

Ans: LAN, WLAN, and telecommunications core (Tietoliikenneydin).

Q: How many entities are covered?

Ans: 10 public entities, including the City of Oulu and its affiliated organisations.

Q: What were the evaluation criteria?

Ans: Price (60%) and Quality (40%).

Q: How many bids were received?

Ans: 4 bids for Lot 1 and 6 bids for Lot 2.

Q: How long is the contract?

Ans: 4 years with an option for indefinite extension.

Q: Is this contract funded by the EU?

Ans: No, the procurement is not financed with EU funds.

Q: Do the winners use subcontracting?

Ans: Yes, both DNA and Elisa indicated the use of subcontracting.

Source: EU Official Journal, Contract Award Notice 549652-2026, OJ S 151/2026, published 7 August 2026.