Chennai-based Gemini Communications and Chinese mobile vendor ZTE Corp have emerged as the likely winners of a Rs 1,000 crore plus order by Bharat Sanchar Nigam (BSNL) for setting up the country’s largest Wimax network across India.
Nearly four months ago, Gemini and HCL Infosystems had won the contract for first phase of the project, worth Rs 260 crore.
The second phase is likely to commence in a few days and will cover nearly all of India’s rural landscape under a mobile Wimax network.
Gemini Communications, which emerged as the lowest bidder for the second phase, is implementing 40% of the first phase currently.
The remaining 60% of the first phase is being implemented by a joint team of HCL Info and Chinese vendor Huawei.
The first phase, which involved 1,100 Wimax base-stations, will be complete by January-end, according to industry sources.
The contract involves setting up a mobile Wimax network using base-stations, mostly mounted on BSNL’s rural telephone exchanges as well as the supply of a limited number of consumer terminals or modems.
While Gemini, the lowest bidder, is likely to be awarded 60% of the contract, ZTE is likely to implement the remaining. Gemini has partnered Bangalore-based Pointred for the supply of the necessary equipment, while the system integration will be done by the Chennai firm. ZTE has bid to do both by itself, according to sources.
BSNL has business models for its Wimax service. A year ago, it awarded four states — Gujarat, Maharashtra, Goa and Andhra Pradesh - to US-based Soma Networks for setting up a Wimax service under a revenue-sharing model.
The service is currently operational, mostly in urban areas. In addition, it also has an ongoing plan to award Wimax services in urban areas in other states as well on a similar revenue share model, where the network is set up by the private partner.
However, for rural areas and for the two states of Punjab and Kerala, BSNL had decided to go it alone, putting up and managing the networks on its own. It will also provide consumer premise equipment (modems) to subscribers on rent and plans to complete this project by December 2010. The first such service was inaugurated on Sunday by minister of state for IT and Telecom, Sachin Pilot at Pisangan near Ajmer.
The company claims speeds of 7 mbps, with a minimum guarantee of 1 mbps, and has packages starting from just Rs 140 per month.
It will also be used to provide government services such as payment of bills, issue of birth certificates, land records, vehicle registration etc, besides enabling ATMs and ticket reservation
centres.
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