Raja advises BSNL to drop 3G stipulation; DoT questions Motorola''s disqualification

09 July 2007

IT and Communications Minister A Raja today said he has advised state-run BSNL to drop the 3G component from its 45.5 million line GSM tender, citing the lack of a policy for implementing third generation network.

If BSNL were to take the minister''s advice, the public sector company may have to reconsider disqualification of US equipment supplier Motorola and its Chinese partner ZTE from the tender - a quarter of which was for rolling out 3G lines.

He, however, said it was for BSNL''s board to decide whether or not to go with the suggestion.

BSNL had selected Sweden''s Ericsson and Finland''s Nokia for executing the contracts, while disqualifying Motorola on the ground that it did not have any expertise in 3G networks.

The department of telecom is believed to have questioned BSNL''s decision to disqualify US telecom company Motorola from participating in the financial bid.

Telecom minister A Raja, who replaced Dayanidhi Maran, is said to have written to BSNL seeking the reasons for Motorola''s disqualification. The US-based telecom equipment firm had also challenged its disqualification in the Delhi High Court, which it later withdrew.