Wednesday, July 18, 2007
BSNL To Acquire Only 14 Mn 2G Lines
New Delhi: The board of state-owned Bharat Sanchar Nigam Ltd (BSNL) has decided to purchase only 14 million second generation (2G) mobile lines at an estimated per line cost of Rs 3,537, lower than the Rs 4,965 per line quoted by Ericsson, the lowest bidder for the full order of 45.5 million lines. The whole order had included both 2G, the currently used technology, and third generation (3G) lines. Another 3.5 million lines supporting 3G mobility will be bought only after the government finalises the spectrum policy for this yet-to-be unveiled service in the country. The BSNL board has got clearance from its legal counsel and the additional solicitor-general of India. To get around the original tender condition that prevented it from changing the order after the bid to acquire only 2G lines, BSNL will place an advance purchase order for 22.75 million lines (50 per cent of the tendered quantity) and subsequently issue the purchase order for 14 million 2G lines. BSNL will also correspondingly reduce the value of the bank guarantees submitted by the vendors.
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