The Hindu Business Line : BSNL for keeping 3G gear as part of cellular contract

New Delhi, July 18 Bharat Sanchar Nigam Ltd may not drop the third generation equipment from the proposed cellular contract. The company’s board has told the Communication and IT Minister, Mr A. Raja, that it would prefer to include 3G equipment though the overall size of the contract may be shrunk.

Mr Raja had earlier asked BSNL to consider dropping the 3G part of the contract on the grounds that the Government had not yet announced its 3G policy.

More Delays

However, BSNL sources said that with most private operators already deploying 3G ready network, BSNL would be left behind if it did not go ahead with its initial plans. They said that floating another tender specifically for 3G equipment would not only make it expensive but also result in more delays as the process would take at least a year to be completed.

BSNL had initially floated a tender for 45.5 million cellular lines of which 25 per cent was for 3G. BSNL has now sought Mr Raja’s nod for placing an order for at least 17.5 million lines in the initial phase. Ericsson had quoted $107 per line while the Minister wanted it to be brought down to less than $100.

Subscriber Growth

It is not yet clear whether simply reducing the overall size of the project would actually bring down the cost of the project. The details of the revised contract would be announced in the next few days.

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