BSNL scraps $1 billion GSM tender: Report

Bharat Sanchar Nigam Ltd has decided to scrap its tender for 93 million GSM lines worth $10 billion and invite fresh bids, newspapers reported on Saturday.

The move will have major ramifications for the telco's expansion plans because it had run out of cellular capacity in most circles nearly 18 months ago, The Economic Times reported. 

The tender, first issued in early 2008, was the world's largest ever telecom equipment contract, but has been snarled  ever since, preventing BSNL from placing orders with short-listed firms.

The short-listed firms were Sweden''s Ericsson, Chinese network-gear maker Huawei and HCL infosystems, which bagged the HT component of the deal, the newspaper said.                                           

Last November, BSNL had ordered 8 million 2G GSM lines from Huawei and that price negotiations were on with Ericsson, which had been shortlisted for providing some lines.                                            

The move comes after a committee led by Sam Pitroda, advisor to the prime minister on public information, infrastructure and innovation had endorsed the Central Vigilance Commission's report to scrap the tender, the paper said.                                           

Local media reported last month the Commission has asked BSNL to stop the tender and had been investigating whether BSNL had followed rules during the tender process.