Alcatel to help ITI upgrade BSNL cellular lines

French telecom major Alcatel will help ITI-upgrade 18 billion GSM lines in the country. The contract was recently awarded to the public sector equipment vendor by Bharat Sanchar Nigam Ltd (BSNL), which reserved 30 per cent of its 60 million GSM lines for ITI. Alcatel will provide technology and equipment to ITI.

"We will support ITI in the upgrading process of the 18 billion GSM lines by providing technology and some equipment. We are confident the contract will be executed jointly within the stipulated time-frame," Ravi Sharma, Alcatel India managing director, told Business Standard here today.

He, however, did not disclose the amount that the company would earn from the deal.

BSNL has reserved 30 per cent of its 60 million GSM lines upgrading contract, worth $4.5 billion, to ITI. The state-owned telecom behemoth was expected to tender the remaining part of the contract.

ITI, Alcatel's local partner, bagged the western India contract.

For the remaining 70 per cent, telecom equipment majors such as Ericsson AB, Nokia, Motorola, Nortel, Huawei and ZTE are believed to have submitted bids. The delayed tender is expected to open by the end of this month.

According to industry analysts, Alcatel supplies core switches, applications and technology licences for GSM base stations and receives 30 per cent of its revenues on joint contracts.

Alcatel and ITI have also opened a second production facility in one of the later's factories to double its capacity.