Court bars BSNL from awarding GSM contract

03 Nov 2006
00:00

(The Statesman via NewsEdge) The Delhi High Court barred BSNL from awarding contracts for its GSM network expansion project till 16 November, keeping alive Motorola's hopes of participating in the bidding process.

Acting Chief Justice Vijender Jain and Justice Kailash Gambhir said BSNL cannot award the contract till the next date of hearing scheduled in November, though it may process it.

BSNL, which plans to expand its GSM network by 45 million lines, had disqualified Motorola from the bidding process on technical parameters, a decision that has been challenged by the US company.

The court adjourned after Motorola's counsel sought some time to go through the reply filed by BSNL.

State-owned BSNL in its reply has contended that Motorola was not eligible as it failed to satisfy the techno-commercial aspect of the tender.

Insiders said Ericsson would be awarded 60% of the contract, while Nokia the remaining 40% for 45.5 million lines expansion project.

According to sources, Ericsson had quoted a price of about $107 per line while Nokia had asked for $177.

The officials of both companies declined to comment

© 2006 The Statesman

© 2006 Dialog, a Thomson business. All rights reserved

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