BSNL 2G expansion plans in limbo over GSM equipment supply from ZTE

KOLKATA: State-run Bharat Sanchar Nigam Ltd's plan to expand its 2G network may hit a Chinese wall. The telco is in the dark on whether China's ZTE will be able to supply Rs 1,300-crore worth of GSM equipment for about five million lines in nine eastern zones, including the northeastern states.

Telecom gearmaker ZTE recently edged out Huawei, Alcatel-Lucent, Nokia Siemens Networks and Ericsson to bag BSNL's mega contract for supply of equipment for 10.15 million GSM lines in the northern and southern states at $58 per line. Since none of these other vendors agreed to match ZTE's price bid, BSNL also asked ZTE to supply GSM equipment in the eastern states.

"BSNL's GSM network expansion across the east and northeast is stuck since ZTE has not confirmed whether it will handle equipment supplies in the region," two executives aware of the development said, adding that BSNL may be compelled to opt for a "snap" or unscheduled tender after a certain point for meeting network expansion timelines in the eastern zone.