Mahanagar Telephone Nigam Limited?s (MTNL) plans to expand its second-and-third-generation networks in the Delhi and Mumbai circles have hit a roadblock due to high equipment costs.
Earlier, the operator had invited bids for procuring equipment to upgrade its 2G and 3G network. MTNL had estimated the total cost of moderisation of its GSM network to be about Rs 5.5 billion. However, the lowest bid for the tender was quoted at
Rs 8 billion, by Nokia Solutions & Networks (NSN).
Facing huge debt, MTNL has requested NSN to revise the quoted price. As per the terms of the tender, a vendor will have to provide MTNL with 2G and 3G equipment as well as radio access network and intelligent network systems for the 1.6-million-line GSM network expansion project.
Modernisation of MTNL?s 2G and 3G systems is crucial as it would help operator to upgrade its core network to support higher data speeds. Owing to low quality of services, MTNL has been steadily losing customers to private operators.
At present, NSN and Alcatel-Lucent maintain parts of MTNL?s 2G and 3G networks. The bids for the latest contract were opened earlier this year. While NSN emerged as the lowest bidder for supplying 2G and 3G equipment to MTNL in both Delhi and Mumbai circles, Huawei emerged as the second lowest bidder. Further, ZTE had quoted the third lowest price in Delhi and the fourth in Mumbai, while Alcatel-Lucent was the third lowest bidder in Mumbai.
