Swedish telecom major Ericsson has emerged the lowest bidder followed by Nokia to supply equipment estimated at a cost of over Rs 20,000 crore (Rs 200 billion) to BSNL for its mega expansion of mobile services.
If selected after due process of evaluation, Ericsson would be awarded 60 per cent of the contract while Nokia the remaining 40 per cent for 45.5 million lines expansion project. The financial bids were opened on Monday.
"We have emerged the lowest bidder based on the numbers. Evaluation process is on and BSNL's decision will be final," P Balaji, vice president (marketing and strategy), Ericsson (India), told PTI.
Asked if Ericsson had quoted a price of $109 per line for the tender, Balaji declined to give financial details citing confidentiality clause in the tender process.
The state owned ITI, for which a contract for equipment for additional 15 million lines has been reserved by the government, will have to match the offer of the lowest bidder, a condition which even the second lowest bidder would have to abide by.
When contacted BSNL, director (finance) S D Saxena said the entire process of evaluation and finalisation could take up to three weeks before the contract is awarded.