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BSNL picks Western bidders for GSM deal
24 May 2010
BSNL is restricting tenders for GSM network expansion to Western vendors and has excluded Huawei and ZTE, CEO Kuldeep Goyal says
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India’s state-run BSNL has restricted Chinese vendors Huawei and ZTE from bidding for a supply contract of 5.5 million GSM lines for its northern and eastern zones. The Indian operator has selected three Western vendors — Ericsson, Nokia Siemens Networks and Alcatel Lucent — to participate in the bidding process for the $429 million contract.
BSNL, headed by Kuldeep Goyal, will not place orders with telecom gear makers from China under a government directive, citing national security, particularly if the equipment has to be installed in areas on international boundaries. Goyal confirmed the decision to India’s Economic Times.
BSNL decided to drop its tender-based equipment procurement process and adopt the managed capacity model, already followed by private telcos. The telecom commission is yet to approve its plans to adopt a managed capacity model.
The communications ministry has not approved any contracts signed by the Indian operators with Chinese operators since February 18. GTB