Bharat Broadband Nigam Limited likely to turn down ITI?s bid

Bharat Broadband Nigam Limited (BBNL), the agency responsible for implementing the National Optical Fibre Network (NOFN) project, has sent a legal notice to ITI stating the likely cancellation of its bid.

The bid in question is for a tender to procure gigabit-capable passive optical networks (GPON), a fixed-line broadband technology which enables data access at over 100 Mps. According to BBNL, in case it accepts ITI?s bid, the NOFN project could be affected because of a dispute between ITI and the Centre for Development of Telematics (C-DoT) over a technology transfer agreement.

In 2011, ITI had signed an exclusive transfer-of-technology agreement with C-DoT, which had indigenously designed and developed GPON technology. As per the agreement, ITI would manufacture equipment for GPON-based broadband services using C-DoT?s technology. However, disputes between the two companies began with ITI expressing doubts about the competitiveness of C-DoT?s products and seeking the Department of Telecommunications? permission to source GPON technology from foreign suppliers. However, the deal has a ?relationship? clause, whereby ITI is not allowed to have a technology tie-up with any other vendor other than C-DoT for procuring GPON products. Subsequently, C-DoT agreed to include a letter under which ITI could look for alternative partners if the products were found to be unsatisfactory. This implied that ITI would have to compulsorily bid for GPON projects with C-DoT as its partner. Now, ITI is looking to break the mandatory clause and wants to have an additional technology-transfer partner. However, C-DoT has opposed ITI?s proposal on the grounds that none of the other vendors with a similar agreement with it had raised any concerns regarding the quality of products. It has asked ITI to raise specific issues and expressed willingness to address them jointly.

Further, C-DoT has written to BBNL stating that ITI?s bid should not be entertained. Taking cognisance of the complaint, BBNL has sent a notice to ITI asking why its bid should not be rejected.