As per industry sources, Bharat Sanchar Nigam Limited (BSNL) has informed the Department of Telecommunications (DoT) that the prices offered by domestic OEMs are around 89 per cent higher than the prices offered by global vendors and are uncompetitive in nature.
Further, BSNL has also expressed concerns over domestic OEMs’ capacity to produce equipment on a mass-scale. The telco was also of the view that in order to gauge the efficiency of a product, at least five domestic vendors should participate in the tender.
BSNL has said that the price quoted by domestic OEMs will be an important parameter for assessing competition and sufficient competition cannot be concluded if the price difference is more than 20 per cent against L1 rates.
Earlier in July 2020, BSNL had scrapped the Rs 80 billion worth tender for planning, engineering, supply, installation, testing, commissioning, and annual maintenance of the 4G mobile network it had rolled out in March.