BSNL’s board decides to scrap GSM deal (India)

www.WirelessFederation.com/news: A tender worth $6 billion to supply equipment for 93 million mobile phone lines on the global system for mobile communications, or GSM, platform has been decided to be scraped by the board of Bharat Sanchar Nigam Ltd.

Scarcity of GSM lines have been suffered by the state run Indian telco, in its bid to increase its subscriber’s addition pace to match the bigger rivals Bharti Airtel Ltd., Reliance Communications Ltd. and privately held Vodafone Essar Ltd.

A report submitted to the Indian government by a panel set up for the restructuring of BSNL and led by, adviser to the country’s Prime Minister Sam Pitroda led to this decision. Changes in BSNL’s procurement processes and procedures have been suggested by the panel in consultation with the Central Vigilance Commission, the country’s federal corruption regulator.

It has also been alleged that the cancelling of the whole tender process has also been suggested by the panel.
Controversies hit the much-delayed tender due to various issues including legal and government directives right from the start. First BSNL was dragged to the local court by the telecom equipment maker Nokia Siemens Networks after it was disqualified for the tender, as it didn’t meet “techno-commercial criteria.

L.M. Ericsson Telephone Co., Huawei Technologies Co, Alcatel-Lucent, ZTE Corp. and Nortel Networks Corp included in the list of bidders.