BSNL's 93 mn GSM-lines tender in limbo

In a surprise move, state-run telecom firm Bharat Sanchar Nigam (BSNL) has cancelled the equipment purchase order given to Chinese company Huawei saying the conditions imposed by the vendor are not acceptable, leaving the fate of Rs 32,000-crore capacity addition programme in limbo.

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. 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.