Bharat Sanchar Nigam Limited (BSNL) plans to float a tender inviting bid from vendors for managing its telecom and IT network for a period of 10 years. The contract is estimated to be worth $700 million.

The managed services contract will include management of the operators? important functions including fixed line as well as mobile billing. BSNL is expected to float the tender by December 2013. The managed services contract is going to be the first major tender from BSNL over the past five years.

However, the deal is likely to face challenges because of security concerns regarding the operators? network. In 2010, the Department of Telecommunications (DoT) had turned down BSNL?s proposal to expand its telecom network based on the managed outsourcing model. According to DoT since the government relys on the operators? network, outsourcing the management of BSNL?s telecom infrastructure to private players could pose serious security threats.