BSNL capex may reduce from Rs 40k cr

State-owned Bharat Sanchar Nigam (BSNL) has said it expects the capex for the 93 million new GSM line contract to be lower than the earlier projected cost of Rs 40,000 crore, following the global financial crisis.

"Earlier, the projected value for the contract was Rs 40,000 crore, but given the current market conditions of falling commodity prices, we expect some benefit in cost," BSNL Chairman and Managing Director Kuldeep Goyal told PTI.

Goyal said the company was aware of the situation and would negotiate intensively," he said.

At present, technical evaluation was on for the tender issued in May and opened in September.

The 93 million line contract was spread out over three to four years. Of the total, some 25 per cent lines would be for 3G service roll out, Goyal said.

All major telecom players were vying for the contract. Ericsson AB, Alcatel-Lucent SA, Nortel Networks Corp and state-run ITI were among the bidders.

BSNL aimed to launch 3G services in early 2009 in some northern and eastern cities followed by the rest of the country.

Hopes were high for BSNL with 3G service for getting the first mover advantage among private operators in the new generation service.