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BSNL to invite bids for adding 9 m GSM lines

NEW DELHI: State-run telecom firm Bharat Sanchar Nigam Limited (BSNL) on Thursday announced that it would soon invite bids for adding nine million GSM lines to expand its mobile base after Nokia Siemens Networks refused to accept an earlier offer due to price differences.

“We will issue a new tender for adding GSM capacity in January next year,” BSNL Chairman and Managing Director, Kuldeep Goyal, told newsmen here. Asked if conditions of the new tender would be changed to allow more companies to participate, he said the entire issue was being examined and there could be changes in some clauses.

In the previous controversial tender of 22.5 million GSM lines, U.S. major Motorola was ousted on technical reasons while Chinese firms ZTE and Huawei could not participate as these companies did not have manufacturing facility in India.

The clause of having manufacturing facility may be done away with to encourage more participation in the tendering process.

BSNL had earlier offered the full tender to Ericsson but the Swedish company, which was the lowest bidder and got 60 per cent of the order, refused to accept Nokia Siemens’ portion of 40 per cent. Ericsson had initially quoted about $107 a line while Nokia Siemens wanted a price of about $167.

The new tender may further delay the company’s expansion plans that have been into a controversy since its beginning.

Ericsson has started implementing its contract for about 13.5 million lines, for about $90 per line that could be completed in the next 3-4 months.

“We are expecting a reasonable rate,” Mr. Goyal said when asked if the company would be able to match the price of the previous tender.

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