BSNL invites 5.5m line bids, excludes Chinese

22-05-2010

Getting security clearance is the main factor behind the decision


BSNL yesterday invited bids for acquiring 5.5 million lines to expand GSM operations from 3 foreign vendors, barring Chinese equipment firms, who had earlier participated in the cancelled 93 million line tender

The decision to this effect was taken at a special board meeting of the PSU, senior officials said.

The three vendors are Ericsson, Nokia-Siemens Network and Alcatel-Lucent, they added.

The PSU has, however, not included Chinese equipment players like Huawei and ZTE. Huawei was winner in one of the regions in the earlier 93 million line tender.

Sources said getting security clearances was the main reason for BSNL??s decision.

Asked why the tender has been reduced to a small quantity, they said it was for immediate requirement.

BSNL had earlier cancelled a 93 million line tender amidst controversy that the process lacked competition, and also that the PSU did not require that kind of capacity addition at one go.

Nokia-Siemens, which was disqualified from participating in the financial bid, took the telecom PSU to court.

Due to cancellation of the tender the PSU has been facing severe shortage in capacity

Input from Economic Times




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