Tags: ZTE Corp | NSN | Nokia Solutions Networks | MTNL | Mahanagar Telephone Nigam Ltd |

Huawei Telecommunications | GSM network modernisation | Alcatel Lucent

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Nokia Solutions Networks placeslowest bid for Mahanagar TelephoneNigam Ltd's GSM expansionKalyan Parbat, ET Bureau Feb 6, 2014, 11.15AM IST

KOLKATA: Finland's Nokia Solutions Networks (NSN) has

pipped France's Alcatel Lucent, Chinese rivals Huawei

Telecommunications and ZTE Corp to emerge as the lowest

bidder for supplying 2G and 3G gear for Mahanagar

Telephone Nigam Ltd's Rs 600-crore GSM network

modernisation plans, a director of the state-run telecom

company told ET.

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MTNL, which runs cellular services in Delhi and Mumbai, needs to reinforce networks urgently to hold on to

its dwindling GSM customer base, which was under 3.5 million in December 2013.

The much belated network modernisation is crucial as the state-run telco, which has been losing millions of

customers to private sector rivals, will now be able to upgrade core networks to support higher data speeds

and the latest smartphone applications.

Another top MTNL executive said, based on bid opening figures , Huawei is the second-lowest (L2) bidder in

Delhi and Mumbai while ZTE had emerged the third lowest (L3) bidder in Delhi and the fourth-lowest (L4)

supplier in Mumbai. Alcatel Lucent is the L3 bidder in Mumbai.

At present, Nokia Solutions Networks and Alcatel-Lucent maintain parts of MTNL's 2G and 3G networks,

respectively. A spokesman of NSN's India unit confirmed that the company had received a "communication

from MTNL that it is the L1 bidder for the 2G and 3G network expansion tender in Delhi and Mumbai".

The company, however, declined to reveal bid details saying its prices and contract details are confidential

with customers. Alcatel Lucent, Huawei and ZTE did not reply to ET's emails seeking a confirmation on their

bid status.

Industry circles familiar with the matter, however, said the difference between NSN and Huawei's price bids is

"wafer thin", as the Chinese networks vendor is learnt to have also put in a very aggressive bid. However,

Huawei will be asked to match NSN's price bid only if the Finnish vendor fails to deliver equipment to MTNL.

Under terms of the GSM tender, MTNL will buy 2G and 3G systems from the cheapest supplier for its

proposed 1.6 million-line network expansion. This apart, the lowest bidder will also supply radio access

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network (RAN) and intelligent network systems.

The latest developments also come on the heels of an empowered inter-ministerial panel asking the

government to give soft loans to MTNL and Bharat Sanchar Nigam Ltd to help both lossmaking state-run

telcos pay a portion of their staff salary bills.

Post-Cabinet approval, MTNL is likely to receive about a Rs 1,000-crore loan over a 10-year span, starting

with an initial Rs 390-crore tranche this fiscal year ending March 31.

Last September, MTNL and big brother BSNL also resolved to combine resources to grab more enterprise

customers. Both operators had inked a pact to share their telecom infrastructure for providing joint services to

corporate customers. The partnership would take care of mobile communications, infrastructure sharing and

enterprise business for information technology and telecom services.

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