BSNL bans Huawei, ZTE from 55 Lakh GSM contract
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BSNL bans Huawei, ZTE from 55 Lakh GSM contract

By SiliconIndia   |    16 Comments
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BSNL bans Huawei, ZTE from 55 Lakh GSM contract
New Delhi: BSNL has barred Chinese vendors Huawei and ZTE from bidding for its 2,000-crore contract for supply 55 lakh GSM lines for its northern and eastern regions. The company has specified that only three Western vendors-Ericsssaon, Nokia Siemens and Alcatel Lucent-can participate in the bidding process.

"It is a fact that telecom gear from Western vendors are expensive when compared to Chinese, but a government directive prevents us from placing any orders with telecom gear makers from China , especially if the equipment has to be installed in circles that share international boundaries," BSNL Chairman & Managing Director Kuldeep Goyal told Economic Times. He added that BSNL board had cleared the new tender, limiting the participation to the three Western vendors, last week.

This is the first tender the PSU has floated after it cancelled its 93 million lines contract, the world's largest for telecom equipment, earlier this year. Following the junking of the 93 million lines contract, which had run into several controversies, including court cases and a probe by the Central Vigilance Commission, BSNL had decided to away with its tender-based equipment procurement process and adopt the 'managed capacity model' followed by private telcos.

The Communications Ministry, in a letter dated May 10 to BSNL, has told the PSU that its plans to outsource the building, management, maintenance of its networks to global equipment majors may pose a 'threat to national security'.

The letter added that since the government relied on BSNL's networks during times of external aggression and internal disturbances, the telco should not compromise on the security factor. The telecom department has also told BSNL that it can only approve a new procurement model after studying the security angle.

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Reader's comments(16)
1: Chines Equipment has been sold by BSNL at India 1st Time.The all Chinees Venders doing bussiness in for last 10 years.Now Our Indian Goverment Opposs this venders even BSNL.I think compare to Chinees Suitcase the Western Suitcase is Big.
Posted by:Rajesh - 25 May, 2010
If somebody gives a poison free, shall we take it?

Best regards,

Arun Replied to: Rajesh - 25 May, 2010
If we are beveling in "Quality" go with Western.
Ajith Replied to: Arun - 25 May, 2010
4: What happens to the Software that is been already supplied. BSNL EVDO Comes with the software supplied by ZTE
Posted by:Anand - 24 May, 2010
Whr national security is concerened it is high time that we r conscienties and do not fall for the chinese ploys. have u forgotten 'Hindi chini bhai bhai' of 1960?
mainakshe Replied to: Anand - 25 May, 2010
6: This all are bussines game of Nokia Seimens to restrict Huawei and ZTE tenders.
Posted by:Ajith - 24 May, 2010
7: I appreciate BSNL's move. Northern and western regions of India can have other GSMs.
Posted by:Dipak Jain - 24 May, 2010
8: through these ways we are just spoiling our relations with China.
Posted by:dinesh - 24 May, 2010
Chinese are not as trustworthy people as even Pakis are. Hence all Chinese companies should be thrown out of India. Their products may be cheap but are of very poor quality.
Sesha Replied to: dinesh - 25 May, 2010
u f... this is the right why to sent them out from india
indian Replied to: dinesh - 24 May, 2010
I think it was a good decision taken by central govt
pls remind that how they hacked/grabbed our defense docs
we cannot trust chinese coys
Hafsal M Replied to: dinesh - 24 May, 2010
Hafsal wat u said is true. We can't believe in China and its products when it comes to national security.
vinodk Replied to: Hafsal M - 24 May, 2010
They hacked our systems, they restricted our employees to enter into their special area, They kept unsecured codes in the critical communication devices, what else reasons need to through them ?
Surianarayanan Replied to: vinodk - 25 May, 2010
I DONT understand why our GVT taking such a steps to spoil the relation with CHINA.After all they are electronically much more strong then us.And without any reason we cant barred any company.the only reason is that the are Chinese. Then if tomorrow Pakistan invent medicine of cancer what we will do....we will not take that because that is invented by Pakistan..
this is too much ridicules.
Arnab Patra Replied to: Surianarayanan - 25 May, 2010
It is not the matter who made it, question is the poison laced products. Who spoiled the relations in 1960, I can recall the day when women donated their ornaments, whole India used to weep when we lost chowkys to Chinese, can we forget what they are doing with Tibet, Dalai Lama. How much shrewed are they. Is in there History is any body good? We proudly talk about Mansarovar, now here is it?

If we buy from them we would strengthen them to fight with us and capture our land. We are not comparable power. Chinese army is stronger then us, we should not live in dreams, measure the gravity. This not that if we get poison free then we should take it! Dear friend this is not to hurt you but to make you aware from enemies. Chupa Dushman khule dushman se adhik khatarnaak hota hai.

Best reagrds,


Best regards,


Arun Replied to: Arnab Patra - 25 May, 2010
If i remember correct, it was the indian who fired the first bullet in IndiChini fight in 1960 so they have the roots of our culture. Since buddha is from india. I dun see anything bad in China, rather India should strengthen relations to neighboring countries, rather than a far fledged country like the western counterparts. China is not a volatile relation to india. rather a very strong ally you can say. Leave paki, they can never be solid, always volatile useless country.
Arindom Replied to: Arun - 27 May, 2010