& cplSiteName &

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        ADD A COMMENT
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.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
,
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
Cisco Throws 5,500 Overboard on Cruise to Richer Waters
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/17/2016
VoLTE Can Drive 4G Small Cells Adoption
Ravi Narayanan, Senior Analyst – Cloud & Next Generation Mobile Networks, Heavy Reading, 8/18/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.