India's BSNL Invites Bids for $6.5 Billion GSM Expansion Contract

BANGALORE -(Dow Jones)- Indian state-run telecom firm Bharat Sanchar Nigam Ltd. (BSNL) has invited bids for a contract valued at over $6.5 billion to supply 93 million global system for mobile communication lines in a bid to add more subscribers, the company's director for finance said Friday.

"At about $70 per line, the tender could be worth over $6.5 billion," S. D. Saxena told Dow Jones Newswires.

He said global equipment majors such as LM Ericsson Telephone Co. (ERIC), Nokia Siemens Networks, Motorola, Nortel Networks, Alcatel-Lucent, Huawei Technology and ZTE are expected to participate in the bidding process.

The bids of all companies will be opened on July 16.

"It should take about six-eight months to award the tenders," he said.

Unlisted BSNL is trying to expand its network to compete with rivals including Bharti Airtel and Vodafone Essar.

It is facing a paucity of GSM lines in its bid to match the subscriber addition pace of its rivals.

Saxena said the 93 million GSM lines would include some for the more technologically advanced third generation, or 3G, services, "depending on the release of spectrum by the government," while the remaining will be used for second generation services.

-By Romit Guha, Dow Jones Newswires; 91-9900181471; romit.guha@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 9th May 2008