Nokia-Siemens merger to impact BSNL tender
The global merger of the network arms of Nokia and Siemens would have a major impact on BSNL's 45.5 million line GSM tender
By INDIATIMES NEWS NETWORK |
NEW DELHI: The global merger of the network arms of Nokia and Siemens to form the thirdlargest ever mobile equipment vendor would have a major impact on Bharat Sanchar Nigam Ltd’s 45.5 million line GSM tender — the world’s largest such contract.
Both companies are amongst the five equipment vendors who have been shortlisted by BSNL for its $4.8-billion tender.
The merger now reduces the BSNL tender to a four-way contest with Ericsson, ZTE and Motorola being the other bidders. BSNL executives said the commercial bids by both companies would be treated as separate.
Analysts say if Siemens were to win the BSNL tender, it could use Nokia’s GSM manufacturing plant in Chennai rather than set up its proposed centre. The BSNL tender stipulates that at least 30% of the equipment bid for must be manufactured in India.
In February, information and communication minister D a y a n i d h i Maran had said, “Siemens planed to make telecom networking equipment in India,” after a meeting with the company executives in Barcelona.
Industry sources also say the merger could lead to synchronisation of Siemens’s Kalwa and Nashik factories, whose capacities are being enhanced , with that of the Nokia plant. Analysts add that the synergised operations will also help them match the Alcatel-Lucent combine, which is a major player in the country.
“Besides, the N o k i a - S i e m e n s combine will also be able to face stiff competition from Chinese equipment vendors such as ZTE and Huawei, who are planning to expand their presence in the world’s fastest growing mobile market,” added a source.
BIG BANG
Merger reduces the BSNL tender to fourway contest If Siemens wins, it could use Nokia’s plant than set up unit May lead to synchronisation of Siemens’s factories with Nokia’s
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