The Hindu Business Line : HFCL likely to bag BSNL's Rs 130-cr rural project

BHARAT Sanchar Nigam Ltd is likely to award the Rs 130-crore satellite-based rural communication project to Himachal Futuristics Communications Ltd for rolling out 18,000 phone lines in remote areas of the country. HFCL will roll out the network based on Israel-based Gilat Satellite Network Ltd's technology.

HFCL is the front runner for the contract since BSNL's technical committee evaluating the bids has disqualified companies which were offering Hughes Network's Direcway technology on ground that Hughes did not have pre-requisite number of installations

Mr Mahendra Nahata, Chairman, HFCL, told Business Line, "The new system will be the cheapest satellite network deployed anywhere in the world. This will have capabilities to transmit not just voice but also data, if required. We would be putting up public phone booths in areas where it is difficult to reach by cable or through radio frequency."

However, controversy could shroud the tender with industry quarters saying that the technology deployed by Gilat called `DialAw@y IP+' would be the first time it would be used by the company anywhere in the world.

This would be in violation of the BSNL's terms and condition which stipulates that there should be tried and tested product and should have a minimum of 4,500 installations done by the bidding companies as a prerequisite for qualification.

BSNL officials, however, said that a controversy was being unnecessarily raised because the technology being offered by Gilat was an enhanced version of its DialAw@y IP technology which has more than the required installations.

"Gilat has clarified that the offered product is an enhanced version of DialAw@y IP and is the outcome of several years of experience in rural telephony. While the fundamental technology is the same, the newer version offers features to meet the market demand," BSNL officials said.