BSNL doesn't wish to re-tender stuck 93-mn-lines contract

State-run telecom major Bharat Sanchar Nigam Ltd (BSNL) is averse to the idea of re-tendering its trouble-hit 93-million-lines GSM tender. It offers, instead, to reduce the size or give it to the company’s existing equipment vendors.

“BSNL does not need to scrap or re-issue its Rs 35,000-crore GSM lines tender, as suggested by the Central Vigilance Commission (CVC), as the existing tender conditions already have a clause that the company can reduce the size of the tender on its own as per requirements,” Chairman and Managing Director Kuldeep Goel told Business Standard.

“The tender was to be executed in three phases. Under the tender provisions, we can limit the tender to just the first phase — for 31 million lines. Second, it can be reduced to 50 per cent of the total quantity — about 46 million lines, or 50 per cent of the second and third phase — 31 million lines,” he said.

Under government procedures, the company could not award the tender to the existing vendors. Every time, a PSU needs to come out with a new tender for open bids. If this norm is changed, we can award the contract to our existing vendors, he added.

Alcatel Lucent and Huawei are among the existing vendors of the company.

The PSU has been steadily losing market share in the highly competitive mobile market in India. The current market share of BSNL stands at 12 per cent.

The BSNL tender has been stuck for various reasons, ranging from home ministry objections on Chinese equipment companies to legal battles by disqualified vendors.

The hurdles started after BSNL disqualified three of the five bidders on technical grounds. Ericsson and Huawei were shortlisted, while Nokia Siemens, Alcatel Lucent and ZTE were disqualified. Nokia Siemens challenged its disqualification in court.

Further, security agencies said BSNL could not buy telecom equipment from any Chinese vendor, including Huawei. BSNL, subsequently, started negotiations with Ericsson for lower prices. However, the Department of Telecommunications then said BSNL may not get the best price, since there was no competitive bidding.

Then, the CVC was asked to look into alleged irregularities in the tender and their report said the company should just scrap the whole thing and re-tender. While all this goes on, the company’s market share continues to be under strain.