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From the News Desk
Friday, 20. July 2007
BSNL Places Order With Ericsson, Cuts Cost Of GSM Order
India’s top telecom firm, Bharat Sanchar Nigam Limited (BSNL) has finally placed the order for 14 million GSM lines with Swedish telecoms company Ericsson at a lower cost of USD 80 per line as against the original cost of USD 107 quoted by it in its bid.
This deal is half of what the state owned BSNL has originally planned but had to cut down because of orders from Indian telecom minister A. Raja.
Ericsson officials here have confirmed that they have received the advanced purchase order (APO) for 2G equipment and would start studying it shortly. The company has two weeks to convey acceptance by pledging a bank guarantee with the public sector firm.
Following curtailment of the final deal size, reduced by half to 23 million GSM lines, the contract now stands at USD 2 billion. Of this, Ericsson being the lowest bidder is to get 60 per cent of the order, while Nokia-Siemens, the second lowest, would get 40 per cent.
Ericsson has been enjoying success in India. In two weeks, it got business worth USD 4 billion from two top telecom operators- Bharti Airtel and BSNL.
This deal is half of what the state owned BSNL has originally planned but had to cut down because of orders from Indian telecom minister A. Raja.
Ericsson officials here have confirmed that they have received the advanced purchase order (APO) for 2G equipment and would start studying it shortly. The company has two weeks to convey acceptance by pledging a bank guarantee with the public sector firm.
Following curtailment of the final deal size, reduced by half to 23 million GSM lines, the contract now stands at USD 2 billion. Of this, Ericsson being the lowest bidder is to get 60 per cent of the order, while Nokia-Siemens, the second lowest, would get 40 per cent.
Ericsson has been enjoying success in India. In two weeks, it got business worth USD 4 billion from two top telecom operators- Bharti Airtel and BSNL.
