Five telecom majors in fray to bag BSNL's GSM network contract

NEW DELHI: Five top global telecom equipment suppliers -- Nokia, Ericsson, Motorola, Siemens and ZTE — are in the field to bag the highest-ever tender floated by a telecom company, the Indian public sector behemoth Bharat Sanchar Nigam Ltd, to add 45.5 million lines using the GSM technology at an investment of Rs 20,000 crore. As per the bidding process, two bidders will be selected. While the lowest bidder will be given 60 per cent of the contract, the second lowest will get the remaining 40 per cent.The tender was floated in June, but there had been delays as the bidders completed the technical evaluation after several rounds of talks only last week.According to sources, the financial bids are expected to be opened Tuesday.The original work was for 60 million lines, but an order for 15 million lines has been awarded to the ITI-Alcatel joint venture, in the reserved quota for a public sector unit.One of the clauses in the tender is a specification that at least a third of the equipment required for commissioning the project should be manufactured in India. Motorola has plans to locate a manufacturing plant near the south Indian city of Chennai, while Nokia has already set up a plant near that city. Ericsson too has a manufacturing facility in India, while Siemens and ZTE have also announced their plans.Meanwhile, reports quoting Ericsson said it is the lowest bidder. If the company wins the contract, it will be the second major work it will be winning in India, after the $1 billion order from the private mobile services provider, Bharti Airtel. Nokia has become the second-lowest bidder.