BSNL’s GSM tender on hold
www.WirelessFederation.com/news: Tender to set up 93 million mobile phone connections based on the global system for mobile communications technology by India’s state-run Bharat Sanchar Nigam Ltd has been put on hold. The matter is under Central Vigilance Commission, a federal corruption watchdog.
The CVC will investigate charges of irregularities in the tender to set up 93 million mobile phone connections. According to H.C. Ahluwalia, general manager, marketing, the telecommunications services provider will touch the 1 million subscriber base mark on its third generation network by March end, as against 600,000 currently.
BSNL’s GSM mega-tender freezed due to probe (India)
www.WirelessFederation.com/news: 93 million line GSM tender has been put on hold by BSNL, Indian state-owned operator, after finding itself under scrutiny by government investigators. Until the investigations of all allegations of irregularities in the tender process are completed, no order will be placed by the telco.
Huawei which was one of just two equipment suppliers selected for the project was dumped from the tender process after post-bidding negotiations stalled. Amid allegations that BSNL has broken CVC rules, fresh probe has been launched by the Central Vigilance Committee (CVC) on the company.
BSNL accepted that they have already renegotiated with Ericsson and the talks could result into 20-25% reduction in price and savings of up to $1 billion. However, an emergency meeting has been planned by India’s Prime Minister’s Office to discuss BSNL’s poor performance. The company is running in loss since two years and has lost its position of second largest operators of India and has slipped to the fifth position.
First delay in the order occurred after disqualified bidder NSN attempted to get the tender blocked by the courts. Second hindrance was caused by the objections of the security agencies citing concerns over Huawei’s possible ties with the Chinese government.
