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Telecommunications Info-Tech - Telecommunications Industry & Economy - Courts/Legal Issues Ericsson emerges lowest bidder for BSNL cellular tender Thomas K. Thomas
New Delhi , Oct. 9 Swedish gear manufacturer Ericsson has emerged as the lowest bidder for BSNL's mega tender for 45.5 million cellular lines (supporting as many subscribers) by quoting about $107 per line. This is lower than the rate at which BSNL's previous GSM tender was awarded in 2001 at an average price of $150 per line. Finnish equipment manufacturer Nokia has emerged the second lowest bidder with a quote of around $176 per line.
Disqualified
The third bidder Siemens, which is understood to have quoted over $400 per line, may not be of consequence since the contract will be awarded to the two lowest bidders after BSNL evaluates their technical and financial bids in detail. Siemens, however, will not lose out in case BSNL decides to go ahead with Ericsson and Nokia because of Siemens' global merger with Nokia announced recently. Two other bidders, Motorola and ZTE, were disqualified by BSNL following which the former has filed an appeal in the Delhi High Court challenging it. Going by the current bids, BSNL will have to fork out nearly $6 billion for the entire 63-million cellular line project, which includes the 18-million line contract already awarded to ITI-Alcatel joint venture as part of the reserved- quota. While the ITI-Alcatel joint venture company will not have to bid for the contract, it will have to match the price quoted by the lowest bidder. The lowest bidder will get 60 per cent of the 45.5-million-line project and the balance will be given to the second lowest bidder. The project envisages supply of equipment for both GSM and third generation 3G services.
Motorola moves HC
Motorola filed a case in the Delhi High Court on Monday against BSNL, seeking an explanation for its disqualification. In a statement issued today, Motorola said that it was surprised and disappointed by BSNL's decision not to invite it for price bid opening. Motorola also questioned the move to allowing Nokia and Siemens to bid separately even though the two companies are being merged. "This effectively creates a situation where only 2 bidders (Ericsson and Nokia-Siemens Networks) are being considered for L1 and L2 orders. Therefore, there is no competition in the bidding process if other vendors are eliminated," said a Motorola spokesperson. Motorola also said that it had not received any communication from BSNL that its bid was being dropped. "At no point in time was Motorola communicated that its bid was being dropped due to technical reasons. On Saturday, October 7, Motorola learnt from informal market sources that it had not been invited for opening of the price bid," said the spokesperson. BSNL sources, however, dismissed the allegations and said that a formal letter was sent to Motorola on October 7 informing them of the decision. They also said that Motorola had not fulfilled even the technical requirements mentioned in the tender conditions. The High Court has directed that the tendering process will be subject to orders of the court. It also asked BSNL to respond to Motorola's appeal at the next hearing.
Related Stories: More Stories on : Telecommunications | Telecommunications | Courts/Legal Issues
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