BSNL cans $10b GSM tender

Nicole McCormick
08 Mar 2010
00:00

BSNL’s board on Friday agreed to cancel the Indian mobile operator’s $10 billion GSM expansion tender, after 22 months of debate.

said the Economic Times.

Prime Minister Manmohan Singh set up an inquiry into BSNL’s botched GSM expansion tender in January. It was chaired by Singh’s adviser on telecom and innovation, Sam Pitroda.

The Prime Minister said the committee would have the final government say on whether the tender would proceed or not.

The state-owned carrier’s 93-million line tender has been shrouded in controversy since its launch in May 2008.

ice

Ericsson

Ericsson was to deploy 25 million lines in the north zone and 18 million lines in the east zone, worth a combined $2.5 billion, according to ET.

tender

Last month, the CVC also recommended that the tender be cancelled.

For BSNL, which is struggling to keep pace with fast-moving privately-owned competitors, the news is disastrous. The cellco exhausted capacity in most of its 20 circles almost 18 months ago, said ET.

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