BSNL looking at Ericsson price offer; Raja seeks deal details

NEW DELHI: The 45-million GSM network expansion plan of BSNL, already delayed by six months due to a legal battle, could be held up further over prices quoted by the two lowest bidders - Ericsson and Nokia.

"It is big contract spread over three years.. We are still working on the APO (Advanced Purchase Order) where we are looking at the selected bidders' quoted price.

"Once that is over, we will work out our own suitable price of the tender and ask them to provide the equipment at that price. If they don't agree, we will negotiate with them. Let that stage come, we are yet to do that when negotiations will take place", BSNL CMD A K Sinha told PTI.

Sinha did not say what would be BSNL's offered price. But talks of negotiation spells trouble for both the vendors, as it is common in big tenders for companies to award contracts first and bargain later.

Swedish bidder Ericsson had quoted 107 dollar per line and had got 60 per cent of the 45 million GSM contract, while the second lowest bidder Nokia secured 40 per cent.

Asked whether the Telecom Minister A Raja wants BSNL to place the APO on a lower price of 100 dollar, Sinha replied: "Minister wanted to know certain details on the deal from us and we have already told him that."