ZTE could be the sole equipment supplier for Rs 4,000 crore BSNL tender

Telecom Lead India: China-based ZTE could be the only
suppler of GSM equipment to BSNL, as other bidders have declined to match the
lowest price quoted by ZTE, reported Economics Times.

Telecom equipment maker ZTE has quoted $50 per line,
which is way below the price quoted by its rivals including Huawei, Alcatel
Lucent, Ericsson and Nokia Siemens Networks.


After revising the tender several times, BSNL has decided
to follow the process of reverse auction.


Under the reverse auction, the company offering the
lowest price would get the equipment purchase contract in north and south zones
and the second-lowest bidder would get the contract for the third zone but at
the same price quoted by the lowest bidder. 


BSNL said the process of this tender is same for
everyone. If none of the lower bidders accept, the contract will go to the
lowest bidder, which is ZTE.


BSNL has already placed the advance purchase orders for GSM equipment required in the north and south zones with
ZTE and it will place detailed purchase orders soon.


Huawei, the second lowest bidder has decided not to
accept these terms and the third lowest, believed to be Alcatel Lucent, would
be asked to deliver equipment,” said RK Upadhyay, chairman of BSNL.


For the Rs 4,000-crore deal, BSNL had decided to give out the contract of 14.37million
lines in 60:40 ratio to two different suppliers. 


The state-run operator floated the tender in July 2011 to
buy equipment to add capacity to its existing 2G network and improve services
in the north, east and south zones.


The tender floated by BSNL involves planning, financing,
engineering, supply, installation, testing, commissioning and annual
maintenance of the GSM lines.

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