BSNL to cut GSM tender by half

Our Corporate Bureau
17 July 2007

New Delhi: Bharat Sanchar Nigam (BSNL) is said to be halving the 45.5 million line GSM order and may re-negotiate the price with Ericsson and Nokia - the two equipment manufacturers who were given the order.

At a three-hour long meeting BSNL board members are also believed to have come to a consensus that the order will be limited to only 2G lines. A separate tender for 3G lines will be floated later on.

The decision to overturn the earlier order, which was a combination of 2G and 3G lines, was taken in cognizance after communication minister A Raja's letter to the board that the existing tender should be restricted to only 2G considering the 3G policy has still not been finalised.

In the earlier order, the equipment suppliers had to supply 17 million lines, out of which 75 per cent would have been for 2G while the rest would be for 3G. As the order is now only for 2G, industry sources say the price per line would range from $60 to $70.

Sources say the board, which decided against any financial rebidding, hopes to complete the deal in the next few days.