Bharat Sanchar Nigam Limited (BSNL)?s mobile network expansion plans have been put on a fast track. In 2011, the company had floated a tender for 14.37 million lines under Phase 7 of its expansion plans for the country?s North, East and South zones.
The incumbent has just concluded the technical evaluation of the bids. It is now readying for financial bids, which will be conducted under an e-tendering process. Thereafter the purchase orders are to be placed.
According to BSNL officials, the 14.37 million lines purchase order is expected by end-February.
BSNL had initiated the bidding process for this tender in July 2011 and companies with a minimum turnover of Rs 80 billion in the last two years will be eligible to participate. The tender includes planning, financing, engineering, supply, installation, testing, commissioning and annual maintenance of the lines.
It is believed that all major telecom equipment makers like Ericsson, Huawei, ZTE, Alcatel Lucent and Nokia Siemens Networks will be participating in the bidding process.
BSNL since 2006 has been in an urgent need of network expansion and enhancement. It has been for years been suffering severe capacity crunch. This has pulled down the incumbents? mobile business significantly and has rendered it unfit to take on the stiff competition from private operators.
However, being a state run operator, BSNL?s hands are tied. It faces bureaucratic delays, lengthy tendering process and frequent interferences from the government.
In the past, BSNL has tried four times to float a tender for network expansion. The last tender finalised by the company under Phase 5 of its expansion was in 2006 for 45 million lines which was later reduced to 14 million lines in 2007. After this, the company floated two more tenders for 93 million lines in 2008 and 5.5 million lines in 2010 but both were subsequently cancelled.
