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| Tuesday, July 31, 2007 |
| BSNL - A falling Telco |
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 Bharat Sanchar Nigam Ltd [BSNL] has the largest Wireline Network in India. It was also the largest mobile service provider in 2005 and gradually fell to the number two spot and is now at number four behind Bharti-Airtel, RCom and Vodafone Essar India.
BSNL's strategy to fight Airtel and Rcom was disturbed by interference from IT and Telecom Ministry by disqualifying Motorola in the Mega GSM Tender which put the ball in the High Court of Delhi. Six months later when the stage was all set, A. Raja the new IT Minister raised an issue of lowering the tender.
Finally, the original tender of 45 Million lines was reduced to 23 Million lines at a reduced price of $97/ line from $107 / line to enable immediate expansion for BSNL. Ericsson and Nokia-Siemens headquarters have to approve the tender at reduced rate before their Indian subsidiaries can go ahead with the implementation.
A. Raja is now opening a larger tender for 50 Million GSM lines. If A. Raja is an ethical and man of integrity, then he has to put a ceiling of $75 / GSM line because he has argued that Ericsson and other vendors were doing the work for other Telcos such as MTNL at that rate. |
Published on Tuesday, July 31, 2007 at 8:32 AM  |
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| Tuesday, July 10, 2007 |
| BSNL Mega Tender in a Mess |
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With the change of Guards in Indian IT and Communications Ministry, the fate of Largest GSM Tender now hangs in Balance.
A. Raja, IT and Communications Minister wants to renegotiate with Ericsson and Nokia-Siemens Networks the winners of the BSNL tender. Both the companies turned down Mr. Raja's requests. A. Raja has questioned to BSNL and DOT the disqualification of Motorola in bidding process.
A.Raja, asked why BSNL should pay Rs 4,940 / line to Ericsson when MTNL is getting 2G Networks deployed at a cost of mere Rs 2,845. A. Raja has also briefed the Prime Minister on this issue. If BSNL/ DoT and the Government wants to go ahead with existing tender, then, Raja wants atleast 3G networks out of the tender as the policy is still under finalization.
What does this mean to Readers Outside India ?
BSNL is a state owned and managed company with huge and inefficient workforce. BSNL was the only telecom service provider in India a decade ago and today its market share is falling everyday. Politicians and Bureaucrats of India have a say in every BSNL tender and their is no transparency in those deals. With questions raised from A.Raja, does it mean, former IT Minister Dayanidhi Maran received any kickbacks ? Why A.Raja wants 3G dropped ? Does he want to invite Fresh tenders at least for 3G and get some kickbacks before he is out of power ? |
| Published on Tuesday, July 10, 2007 at 4:19 PM |
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| Tuesday, July 03, 2007 |
| Nokia Siemens wins Airtel's $900 Million Contract |
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Nokia Siemens Network has won Bharti Airtel's $900 Million contract to expand its mobile telephony in the circle of Mumbai, Maharashtra and Goa, Gujarat, Madhya Pradesh and Chattisgarh, Bihar and Jharkhand, Orissa, Kolkata, and West Bengal. Airtel is India's largest mobile service provider.
Nokia Siemens Network will build 1.8 Million next generation network ports to enhance National long distance telephony of Airtel. It will also add capacity to carry 4.5 Million users traffic on its International long distance circuit.
As goBroadband reports, Bharti Airtel championed the idea of outsourcing network operations to Equipment vendors all the other telcos including Vodafone-Hutchison-Essar, Idea Cellular are following in the footsteps of Bharti Airtel. |
| Published on Tuesday, July 03, 2007 at 5:56 PM |
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