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Our Bureau

18 million lines for ITI-Alcatel venture

New Delhi , March 23

Bharat Sanchar Nigam Ltd has floated the tender to buy mobile equipment for rolling out 63.5 million lines worth Rs 20,000 crore.

Of this, about 18 million lines have been reserved for the ITI-Alcatel joint venture under the Government's quota system and the remaining 45.5 million lines will be awarded to the two lowest bidders through a competitive bidding process.

Mr A.K. Sinha, Chairman and Managing Director, BSNL, said that 25 per cent of the new lines will be third generation (3G) technology, which will go up to 50 per cent in the later phase of the roll-out. "We are assuming that the government will allocate the spectrum required for 3G services by the time we finalise this tender."

Global telecom gear manufacturers including Nokia, Ericsson, ZTE, Huawei and Motorola are expected to line up for this mega project.

Local manufacturing

In a bid to give a boost to local manufacturing, BSNL has made it mandatory for the bidders to set up a local unit either on their own or through contract manufacturers who already have a base in India.

The equipment provider also has to make sure at least 30 per cent value addition on the indigenously manufactured core equipment.

However, manufacturers have expressed concern that BSNL has not set aside a part of the project for those companies, which have already committed investments in manufacturing facility in the country.

The Government had announced that it had received commitments worth $900 million from global telecom and IT manufacturers to set up units in India.

A Europe-based gear manufacture said the BSNL would award the project to only two successful bidders while many others have committed to set up a factory solely for the purpose of getting business from BSNL.

Related Stories:
BSNL profit crosses Rs 10,000 cr in 2004-05 — To float GSM tender for 60 million lines soon

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