According to news reports, the government may direct Bharat Sanchar Nigam Limited (BSNL) to start procuring all its telecom equipment from vendors who already have or are planning to set up manufacturing facilities in India. If this rule is enforced, BSNL will include this clause in all its procurement activities, including the 60 million line GSM tender expected to be issued shortly. Of the telecom vendors, Alcatel and Ericsson have already announced plans to manufacture mobile base stations in India. While Alcatel has entered into an agreement with Indian Telephone Industries, Ericsson has begun manufacturing at its Rajasthan plant. Nokia too is investing in setting up a handset manufacturing unit in the country. BSNL may replicate the procurement policy for nonwireless services such as broadband as well.
