Monday, December 18, 2000
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BSNL defers Rs 800-crore tender for GSM lines till January 

Neeraja Kumar  
New Delhi : Bharat Sanchar Nigam Limited (BSNL's) Rs 800-crore tender for 15 lakh GSM lines has been postponed yet again. The tender, which was originally scheduled to come out in October, and was then delayed to November and then to December, now has been postponed again by another month. "The NIT or Notice Inviting Tender, will now be issued by end of January," said a senior BSNL official. The tender is for GSM lines for providing cellular telephony to more than 600 cities and villages adjoining those cities, across India. BSNL plans to use these lines to provide both rural and urban telephony.

Cellular network will also cover all important national and state highways. Meanwhile, industry experts feel that with every delay in its GSM plans, BSNL is losing revenue on "an every day basis and the loss can go into crores." Instead of trying to make up for the fact, that it is a late entrant and should therefore try to launch its services as soon as possible, "BSNL has been sitting on its licence to operate cellular services on a nationwide basis for nearly an year now," pointed out an industry source. It is also being said that till BSNL launches its cellular service, real growth will not happen in the cellular market: "Even though the number of subscribers are growing right now, this will increase exponentially when BSNL starts its service. A lot of people are waiting for BSNL to come into market because expectations are that with BSNL coming in, competition will increase and prices will go down." The companies that are expected to participate in this tender and are also affected by the frequent delaysinclude all leading international equipment providers, including Motorola, Ericsson, Lucent Technologies, Nokia, Alcatel and Nortel, etc.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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