The Hindu Business Line : LG says HFCL not eligible for BSNL's CDMA tender

BHARAT Sanchar Nigam Ltd's plans to roll out code division multiple access (CDMA) based telephone lines has got caught in yet another controversy with one of the bidders, LG-Surana Telecom, complaining that the State-owned company has overlooked the lack of eligibility of the Himachal Futuristics Communications Ltd-Jinpeng combine for the supply of 10.5 lakh CDMA fixed wireless telephone instruments.

The HFCL-Jinpeng combine has emerged as the third lowest bidder with the Huawei-Terracom joint venture taking the lowest bidder spot. According to BSNL's tender conditions, the contract will be awarded to the lowest three companies.

LG-Surana Telecom combine has emerged the fourth lowest bidder and stands to benefit if HFCL-Jinpeng falls out of the race.

Mr K.K. Kushwaha, Vice-President, CDMA, LG Electronics said, "Qualcomm, which is the licensing company for CDMA technology has not listed Jinpeng as an authorised manufacturer of CDMA fixed wireless terminals. BSNL must look into the eligibility of the bid submitted by HFCL-Jinpeng since public money is involved in the project."

When contacted, Mr Mahendra Nahata, Chairman, HFCL, termed the complaint as mischievous. "False allegations are being made by people who have vested interest. Having lost out in the tender process, they are now trying to misguide everybody with the intention of trying to make a come back in the race. This is deplorable and is in bad taste and smacks of unethical practices which unless stopped will give a bad name to the entire industry."

In a letter written to the BSNL Chairman, LG's local partner Surana Telecom said, "The technical compliance along with the certificates of the unknown companies should have thoroughly been checked by the concerned officials of BSNL before opening of the financial bid. Our company along with other major participating bidders have objected for opening of financial bid in the tender hall and have registered our protest for not following the procedure. Supply of 3,00,000 terminals and performance record for the same issued by an non-registered manufacturer is also a cause of concern which may also be scrutinised."

Mr Nahata added that HFCL has been in the telecom equipment business for the last 15 years and it was well aware of the issues relating to CDMA licensing and manufacturing. "We have no hesitation is saying that Jinpeng is a designer, developer, manufacturer and seller of fixed wireless terminals. We are in full compliance of the tender conditions stipulated by BSNL," Mr Nahata said.

BSNL's tender for procuring CDMA equipment has also come under heavy weather with Lucent and Nortel complaining that the terms and conditions of the tender was favouring Chinese manufacturer ZTE.