ITI bags Rs 267 cr order from BSNL; pips Ericsson, NSN

State-run telecom equipement manufacturer ITI Ltd has bagged Rs 267 crore contract from BSNL for supplying telecommunications equipment for 2G and 3G telephony networks of the telco, beating its global rivals.

As per the contract, ITI will supply telecommunications equipment for BSNL's second-generation and third generation mobile telephony networks and complete deliveries within seven months from July 14, BSNL said in a note.

The contract has two parts one valued at Rs 36.68 crores and the other at Rs 230 crores. Shares of ITI closed at Rs 43.80, up 5.42 per cent at the Bombay Stock Exchange.

ITI has pipped Ericsson and Nokia Siemens for bagging the contract. Other players who were in the fray are Motorola and ZTE, who were not qualified after the technical evaluation.

 

This deal is likely to give a shot in the arm to ITI, which was fast loosing market share to its global peers like Nokia siemens, Ericsson, ZTE and others.

ITI has reported its lowest quarterly losses in eight years by reporting the net loss of Rs 63.83 Crores for the first quarter of 2010-11 as against Rs 107.78 Crores in Q1 2009-10.