BSNL dumps Chinese, fresh bids on card
The PSU will look at side-stepping controversies by forging tie-ups with non-Chinese players.
By Joji Thomas Philip, TNN |
NEW DELHI: With BSNL’s high-profile 50:50 joint venture with Chinese telecom vendor ZTE failing to take off, the PSU is now considering the option of inviting fresh expressions of interest (EoIs) from global players to revive its manufacturing units.
BSNL sources say, this time around, the PSU will look at side-stepping controversies by forging tie-ups with non-Chinese players.
This is because, after the first round of EOIs, the PSU had shortlisted Chinese majors - ZTE and Huawei. (Huawei then lost out to ZTE in the final selection process.) Despite talks between BSNL and ZTE reaching the final stages, the project has failed to take off for two reasons - ZTE’s failure to obtain the Foreign Investment Promotion Board’s clearance to expand its Indian operations, and the concerns raised by intelligence agencies on the Chinese company being a being a security threat to the nation.
ET had first reported in June that BSNL was exploring the option of deferring its plans to form a 50:50 JV with ZTE for manufacturing a million CDMA mobile handsets and an equal number of fixed wireless terminals. Sources also added if BSNL were to go in for fresh EoIs, the focus would be on GSM equipment manufacturing, and not CDMA.
The change in focus comes as the company’s future plans would be largely driven by GSM-based services. Besides, they also clarified that even if a new JV partner were selected, the project’s first step would be to revive the PSU’s Kolkata plant. (Last year, BSNL’s Kolkata factory had the received ISO 9001 certification from the Bureau Veritas India.)
Besides, it will also involve technology transfer, where the JV partner will have also have to bring in the machinery. If a JV materialises, it will mark the PSU’s first-ever JV with an international telecom major.
BSNL sources say the PSU had waited months on end for clarity on the government’s stance towards ZTE before entering into any agreement with it to revive the PSU’s manufacturing base in Kolkata.
Even as the Department of Telecom cleared the proposal, the objections raised by the home ministry, coupled with ZTE’s ‘reluctance’ towards the project following its disqualification from the BSNL tender for 45.5m lines has led to the current scenario, sources added.
BSNL sources say, this time around, the PSU will look at side-stepping controversies by forging tie-ups with non-Chinese players.
This is because, after the first round of EOIs, the PSU had shortlisted Chinese majors - ZTE and Huawei. (Huawei then lost out to ZTE in the final selection process.) Despite talks between BSNL and ZTE reaching the final stages, the project has failed to take off for two reasons - ZTE’s failure to obtain the Foreign Investment Promotion Board’s clearance to expand its Indian operations, and the concerns raised by intelligence agencies on the Chinese company being a being a security threat to the nation.
ET had first reported in June that BSNL was exploring the option of deferring its plans to form a 50:50 JV with ZTE for manufacturing a million CDMA mobile handsets and an equal number of fixed wireless terminals. Sources also added if BSNL were to go in for fresh EoIs, the focus would be on GSM equipment manufacturing, and not CDMA.
The change in focus comes as the company’s future plans would be largely driven by GSM-based services. Besides, they also clarified that even if a new JV partner were selected, the project’s first step would be to revive the PSU’s Kolkata plant. (Last year, BSNL’s Kolkata factory had the received ISO 9001 certification from the Bureau Veritas India.)
Besides, it will also involve technology transfer, where the JV partner will have also have to bring in the machinery. If a JV materialises, it will mark the PSU’s first-ever JV with an international telecom major.
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BSNL sources say the PSU had waited months on end for clarity on the government’s stance towards ZTE before entering into any agreement with it to revive the PSU’s manufacturing base in Kolkata.
Even as the Department of Telecom cleared the proposal, the objections raised by the home ministry, coupled with ZTE’s ‘reluctance’ towards the project following its disqualification from the BSNL tender for 45.5m lines has led to the current scenario, sources added.
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