Processing .....please wait.. 
The article has been forwarded.... 
News >> Technology >>
BSNL cancels Huawei order, 93 Million GSM-lines tender in limbo
By siliconindia
|
Monday, 07 December 2009, 22:44 IST |
4 Comments
Bangalore: In a surprise move, state-run telecom firm BSNL has canceled the equipment purchase order given to Chinese company Huawei saying the conditions imposed by the vendor are not acceptable, leaving the fate of 
32,000-crore capacity addition program in limbo.
Bharat Sanchar Nigam (BSNL), after prolonged discussions, had placed order for 20 million GSM lines for the South Zone with Huawei last month. According to sources close to the development, BSNL's extreme step comes in the wake of the Chinese vendor's conditional supply of equipments. The Huawei Spokesperson declined to comment.
"There was no scope for accepting conditions as the order was placed after detailed negotiations and as a government owned firm (BSNL) we do not accept conditions," a senior BSNL Official said. When asked about the conditions, the official declined to comment. While for the North and Eastern region, the PSU is still negotiating with another vendor - Ericsson and has not yet finalised the order.
Sources also indicated that BSNL was weighing various options, including calling fresh bids for adding 93 million GSM lines to its networks. Officials said, in the process, BSNL would lose further market share to private operators as it may exhaust the remaining capacity in various circles soon.
BSNL today said that it had placed purchase order for mobile equipment for 20 million GSM lines for the south zone with Chinese firm Huawei and will not call for any fresh bids. Last month BSNL CMD Kuldeep Goyal had said the PSU is in advanced stages of negotiations with Ericsson for the north (25 million) and east zone (18 million) and hopes to finalize it soon.
32,000-crore capacity addition program in limbo.
Bharat Sanchar Nigam (BSNL), after prolonged discussions, had placed order for 20 million GSM lines for the South Zone with Huawei last month. According to sources close to the development, BSNL's extreme step comes in the wake of the Chinese vendor's conditional supply of equipments. The Huawei Spokesperson declined to comment.
"There was no scope for accepting conditions as the order was placed after detailed negotiations and as a government owned firm (BSNL) we do not accept conditions," a senior BSNL Official said. When asked about the conditions, the official declined to comment. While for the North and Eastern region, the PSU is still negotiating with another vendor - Ericsson and has not yet finalised the order.
Sources also indicated that BSNL was weighing various options, including calling fresh bids for adding 93 million GSM lines to its networks. Officials said, in the process, BSNL would lose further market share to private operators as it may exhaust the remaining capacity in various circles soon.
BSNL today said that it had placed purchase order for mobile equipment for 20 million GSM lines for the south zone with Chinese firm Huawei and will not call for any fresh bids. Last month BSNL CMD Kuldeep Goyal had said the PSU is in advanced stages of negotiations with Ericsson for the north (25 million) and east zone (18 million) and hopes to finalize it soon.