Light Reading

BSNL Expansion Delayed Yet Again

Light Reading
News Analysis
Light Reading
7/11/2007
50%
50%

Indian operator Bharat Sanchar Nigam Ltd. (BSNL) 's mobile network expansion is once again mired in controversy, prompting employees to strike Wednesday in protest at further delays in awarding equipment contracts.

After multiple hiccups in the bidding process, BSNL had finally been poised to place orders worth more than $4 billion for GSM equipment with Ericsson AB (Nasdaq: ERIC) and Nokia Networks in May. (See BSNL to Award $4.5B Mobile Contracts.)

But India's new IT and Communications minister, Andimuthu Raja, has taken issue with the tender negotiated under predecessor Dayanidhi Maran, and is pushing the state-run operator to renegotiate the prices quoted by the vendors. (See India Roundup: Partnerships & Politics.)

A statement on the Ministry of Communications and IT's Website says that Raja "found some discrepancies in [the] processing of GSM tenders and accordingly, advised BSNL to look into those issues in the larger interest of BSNL."

Ericsson put in a bid to supply the equipment at $107 per line, and, as the lowest bidder, it would get 60 percent of the 45.5 million lines to be installed. Nokia was the second lowest bidder at $160 per line, so it would get the remaining 40 percent if it agreed to meet Ericsson’s price.

But Raja has questioned why BSNL would award the bulk of the contracts to Ericsson, when Motorola Inc. (NYSE: MOT) is supplying GSM equipment to BSNL’s sister carrier, Mahanagar Telephone Nigam Ltd. (MTNL) , at a price of $70 per line.

Raja has also asked BSNL to clarify why it disqualified Motorola from bidding, a move that resulted in Motorola taking the operator to court. (See Moto Stalls BSNL's Wireless Tender.)

Ericsson has reportedly refused to reduce its bid further, so BSNL is now under pressure to remove an order of 3G gear that was to be included in the contracts and focus on procuring cheaper GSM equipment. Raja argues that it's unnecessary for the carrier to install 3G lines when the government is yet to agree on a 3G policy and suggests that BSNL issue a separate 3G tender at a later date. (See India on Edge Over 3G.)

BSNL could end up having to invite fresh bids from all the major vendors, including Motorola and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), which was also disqualified during the technical evaluation.

The ongoing saga led 400,000 BSNL employees to stage a one-day strike on Wednesday, demanding that the carrier award the contracts immediately. In a prepared statement V.A.N. Namboodiri, secretary general of the BSNL Employees' Union, claimed that "the intolerable delay will be the death knell of BSNL unless immediate action is taken. Not only is BSNL unable to provide new connections, but also its relevance in [the] telecom sector itself will be questionable unless immediate action is taken."

The statement notes that BSNL exhausted its capacity to provide new mobile connections in March. "BSNL was unable to provide even nominal connections during the last three months... sliding down to the fourth position" in market share, it says.

In response to the strike, the Communications and IT Ministry’s statement claims that union members are protesting "for reasons best known to them." BSNL is due to respond to Raja's queries within a week and Raja has assured the union that in making a decision on its response, "the interests of BSNL and its employees will be protected at any cost."

"During the intervening period till receipt of supplies under the tender, appropriate steps will be taken to ensure that BSNL does not suffer due to lack of network capacity," it says, without providing details.

BSNL, which has around 28 million mobile subscribers, has been attempting to kickstart this second phase of its network expansion since early 2006 as it struggled to keep pace with India's massive demand for telecom services. Carriers are now adding around 6 million new subscribers every month, prompting them to embark on massive expansion projects to increase capacity and relieve network congestion.

— Nicole Willing, Reporter, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
readlightly
50%
50%
readlightly,
User Rank: Light Beer
12/5/2012 | 3:05:26 PM
re: BSNL Expansion Delayed Yet Again
Vendors- Pay the new minister and get started. Your "investments" with the old minister have been fruitless.....woe betide the continuing saga of India's bureaucracy.
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Networks of the future will rely on "white box" switches and servers rather than proprietary hardware and that's going to alter the shape of the communications industry. Who says so? John Chambers.
LRTV Custom TV
The Benefits of HyperScale Clouds for NFV

3|27|15   |   01:50   |   (0) comments


Hyperscale cloud has been developed by the Internet giants to support the creation and delivery of software-based services at blistering speeds, and at the lowest possible cost. The original ETSI NFV vision was to adopt hyperscale cloud architecture and practices. This vision has become somewhat obscured along the way, due to misunderstandings about the hyperscale ...
LRTV Huawei Video Resource Center
eLTE Rapid Meets the Need for Speed

3|26|15   |   4:45   |   (0) comments


Designed especially for emergency and dedicated ad hoc local mobile communications coverage, Huawei's eLTE Rapid solution can deliver trunked voice, video and data coverage for multiple users over a 6km range and be set up in just 15 minutes, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
On Videos: Challenges & Opportunities

3|26|15   |   5:56   |   (0) comments


Most everything is now connected. And along with 4K and 4G technologies, everyone could be creating and broadcasting video contents. Users are expecting better video experience with any screen, anywhere and anytime. Operators will meet new challenges, but also see some big opportunities.
LRTV Custom TV
JDSU: Delivering Dynamic Networks for a Personalized Experience

3|26|15   |   5:59   |   (0) comments


Light Reading speaks to JDSU at Mobile World Congress 2015 about new solutions in the areas of HetNets, VoLTE, backhaul, virtualization, big data analytics, and real-time intelligence.
LRTV Custom TV
Smarter Service Chaining & New Ways to Benefit From Qosmos Technology

3|25|15   |   03:11   |   (0) comments


David Le Goff, director of strategic and product marketing at Qosmos, explains how the company has added application awareness to subscriber information to make service chaining more efficient and reduce costs for networking and infrastructure. In addition, Qosmos technology, which has been delivered as C libraries, is now also available as a virtual machine, ...
Between the CEOs
Qosmos CEO: The Changing Face of DPI

3|24|15   |   13:53   |   (0) comments


LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures. Also, how the comms market is becoming more like the automotive industry.
LRTV Huawei Video Resource Center
FC Schalke Scores With Its Agile Stadium

3|24|15   |   6:23   |   (0) comments


Top German soccer club FC Schalke 04 has deployed a new, agile WiFi network from Huawei in its Veltins-Arena stadium and is reaping the benefits in terms of customer satisfaction and business opportunities, explains marketing chief Alexander Jobst.
LRTV Huawei Video Resource Center
Huawei’s Insights on Mobile Video

3|24|15   |   7:51   |   (0) comments


More people than ever are now watching videos on smartphones. Seventy percent of mobile traffic will be video traffic until 2018. In this video, Huawei's exports give their insights on mobile video in terms of business model, network planning and 4G network construction.
LRTV Documentaries
The Rise of Industry 4.0

3|24|15   |   02:26   |   (9) comments


Are you ready for the fourth industrial revolution? It's a big deal for influential operators such as Deutsche Telekom.
LRTV Huawei Video Resource Center
Getting Connected With eLTE

3|23|15   |   06:04   |   (0) comments


Trunked radio communications have entered the 4G LTE world, and with Huawei's eLTE solution, can now deliver a full range of data and video services as well as push-to-talk voice, explains Huawei's Norman Frisch.
LRTV Huawei Video Resource Center
Funkwerk’s on Track With Huawei

3|19|15   |   3:23   |   (0) comments


GSM-R technology specialist Funkwerk and Huawei have forged a partnership that is benefiting both parties, notes Funkwerk's Gottfried Winter.
LRTV Documentaries
How EANTC Tested Cisco's Virtualization Solutions

3|18|15   |   5:49   |   (0) comments


Carsten Rossenhövel, managing director of independent test lab EANTC, tells Light Reading founder and CEO Steve Saunders about the innovative approach his team had to take when validating Cisco's service provider virtualization and cloud solutions.
Upcoming Live Events
April 14, 2015, The Westin Times Square, New York City, NY
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
All Upcoming Live Events
Infographics
Hot Topics
AT&T Woos SMBs With Small-Scale WiFi
Sarah Thomas, Editorial Operations Director, 3/26/2015
The Rise of Industry 4.0
Ray Le Maistre, Editor-in-chief, 3/24/2015
Google Hires Wall Street's Most Influential Woman as CFO
Dan Jones, Mobile Editor, 3/24/2015
Average US Broadband Speeds No Great Shakes
Mari Silbey, Independent Technology Editor, 3/25/2015
Net Neutrality Suits: Only The Beginning?
Alan Breznick, Cable/Video Practice Leader, 3/24/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Cats with Phones
Interspecies Phone Love Click Here
"No, you hang up."
"No, YOU hang up."
Latest Comment