Ericsson accepts BSNL's GSM tender

Ericsson has accepted the Rs 5,150-crore tender from Bharat Sanchar Nigam Ltd (BSNL) to supply 13.2 million GSM lines to the state-owned company.

The equipment company submitted a bank guarantee after accepting the offer.

A senior executive of Ericsson confirmed that it had submitted the bank guarantee. BSNL will fork out around Rs 3,901 per line for the order which will be both for 2G as well as 3G lines.
Under the advance purchase order the company will now supply 9.7 million 2G lines and another 3.5 million 3G lines but only after the government finalises the policy on the new service.

Nokia, which is the second highest bidder, is also expected to submit its bank guarantee for a combined 2G and 3G order of around 9.5 million lines.

The new price is much lower than what Ericsson, which was the lowest bidder for the earlier 45.5 million line contract, had bid for at Rs 4,965.

The initial order was halved by the BSNL Board.