BSNL decision to disqualify Nokia-Siemens right: Panel

BSNL’s decision to disqualify telecom equipment major Nokia-Siemens from participating in its Rs 32,000-crore GSM expansion project has been held right by an independent panel of two former Chief Election Commissioners (CEC).

Two former CECs — B B Tandon and T S Krishnamurthy — were mandated to investigate the BSNL decision in the face of protest registered by Nokia-Siemens Network (NSN). The panel appointed by BSNL was duly approved by the Chief Vigilance Commissioner (CVC).

“BSNL’s selection of other vendors is right. The panel did not find merit in NSN’s argument,” a senior BSNL official said on a condition of anonymity.

NSN did not respond on what would be their next step.

The complaint was referred to the panel after NSN, which was disqualified on technical grounds, alleged that the state-run telecom major’s recent 93-million GSM lines tender was conducted in a non-transparent manner.

BSNL had chosen the bids by Ericsson and Huawei, while rejecting the offers made by three other vendors — Nokia Siemens, ZTE and Alcatel Lucent. However, BSNL has not placed the Advanced Purchase Orders (APOs) with the respective vendors so far.

Ericsson has emerged the lowest bidder for North and Eastern regions while Huawei was selected for the Southern region. BSNL is yet to decide on Western part and it may go to the PSU ITI under reservation category.

Sources said NSN has an option to make a representation to BSNL after the independent panel’s report and then final decision has to be taken by BSNL management on whether to accommodate NSN’s request.

NSN had bid for providing equipment for 2G services in the Northern region and for 3G services in all the regions and in both caes the company was disqualified on technical grounds.

Chinese company Huawei, which was the sole financial bidder in the south, was selected to get the contract even though there were major objections raised by security agencies on giving orders to a Chinese company due to security risks.

However, BSNL came up with a formula that Chinese vendors will not be allowed in states which have international borders with Pakistan, Bangladesh, Myanmar and China. While Ericsson was finalised for supplying equipment for Northern and Eastern regions.

NSN had raised issues regarding the transparency of the tendering process since the company was not given any clarifications for its disqualification.