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Foreign firms rush to submit bids for BSNL contract

15 Jun 2006
00:00
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(Economic Times via NewsEdge) Handset makers Nokia, Motorola, Ericsson, Siemens, and ZTE submitted bids for BSNL's tender for procuring equipment and installing GSM network of a total capacity of 45.5 million lines.

Chinese equipment maker Huawei did not participate in the bidding process for the billion-dollar contract.
Two out of the five will get the orders.

In earlier tenders, BSNL used to place orders to the three bidders, one each for South, East and West zone.
According to tender details, 60% of the order would go to the lowest bidder and 40% of the contract would be given to the second lowest bidder.

'Out of 18 vendors, who had bought the bid documents, five have submitted the bids for our 45.5m GSM lines expansion which include Nokia, Siemens, Ericsson, Motorola and ZTE,' said AK Sinha, BSNL's chairman.
ITI-Alcatel has already got orders for the Western zone. The tender makes it mandatory for the vendors to set up manufacturing base in the country.

After first phase of project, the vendors have to ensure a minimum of at least 30% value addition on the indigenously manufactured core equipment.

BSNL officials said that the financial bids will be opened when the evaluation of technical bids, which may take about three weeks, are over.

c 2006 The Economic Times

c 2006 Dialog, a Thomson business. All rights reserved

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