Raja gives go-ahead to BSNL decision

To place order soon, move despite DoT secy's opposition.

Even as Department of Telecom Secretary DS Mathur expressed dissatisfaction with state-owned Bharat Sanchar Nigam Ltd's board decision to halve the size of its mobile equipment tender from the original 45.5 million lines and not buy equipment for third-generation (3G) lines immediately, Communications Minister A Raja has cleared the plan on the grounds that another review will cause further delay.

The file was put before Raja on Tuesday, containing Mathur's comments. The minister noted that "there is no need for further consideration as it will delay the issue of the order".

The minister's decision was conveyed to the BSNL management today. "The file has come back after the minister's approval. The order will now be placed according to the board decision," BSNL sources said.

The BSNL board on Monday decided to buy only 14 million second generation (2G) lines, while holding back the plan to buy 3.5 million 3G lines. It will place the latter part of the order once the 3G spectrum policy is finalised by the government.

Earlier this month, Raja had suggested that the price for the tender for 45.5 million lines for second-generation (2G) and 3G services awarded to Ericsson and Nokia was too high and that the successful bidders were no more qualified than Motorola and ZTE, which were disqualified.

Following this, a technical committee re-evaluated the bid and made its recommendations to the board, which were accepted.

In his July 17 remarks on the BSNL decision, Mathur had also criticised the decision to scrap purchases for 3G services for high-speed Internet access.

"Once the board has taken a decision to include 3G in its advance purchase order, to take a view that no 3G equipment will be ordered till the finalisation of spectrum (policy) does not appear reasonable. Core equipment for 3G can be ordered even if spectrum for 3G has not been finalised. Only the radio part can be deferred," he said.

PTI adds: Shortly after it got the direction from Raja, BSNL said the advance purchase order would be placed in a day or two.

"The order will be placed either today or tomorrow to the two successful bidders "” Ericsson and Nokia," said BSNL CMD AK Sinha.

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