BSNL’s Network Struggles

According to India’s The Hindu, BSNL has lost a huge amount of revenue in the past two months due to the poor quality of its wireless network. According to the newspaper, Calcutta Telephones has told BSNL it will not make any payments until Ericsson and Nortel to fix the problems. The newspaper said Ericsson has supplied the intelligent network equipment while Nortel has deployed mobile switching centre and home location register gear. BSNL is preparing to solicit tenders for a $5-billion equipment contract but there is growing speculation Nortel will not bid aggressively or decline to bid at all given it will morethan $200-million on its current $500-million contract with BSNL. According to India’s Economic Times, Nortel has already turned down a $250-million order from BSNL. Morgan Stanely analyst Scott Coleman believes Alcatel and Ericsson are the leading candidates to win major pieces of BSNL’s new contract.

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