BSNL is planning to invest Rs 20 billion for launching CDMA-based mobile services. The public sector unit, which intends to offer bundled services, has invited global CDMA handsetmakers such as ZTE, Huawei, Samsung and LG for tie-ups. The PSU has stipulated that the handset must be locked for use on BSNL’s network only and that there should be a two-year replacement guarantee. BSNL will functionally test the devices and monitor the performance of each handset manufacturer.

The company is planning to start 3G services in December 2008 and has placed purchase orders for 3G equipment for the northern, eastern and western zones.