Ericsson for quick end to BSNL tender dispute

A day before the hearing on US-based Motorola's petition challenging BSNL's Rs 20,000 crore GSM tender, Ericsson, which had emerged the lowest bidder, said an early solution to the legal battle will be good for both the company as well as the growth of India's telecom sector.

"India is adding a record number of mobile subscribers every month...Any delay in the award of contract by BSNL will adversely affect both the company and country," Carl-Henric Svanberg, president and worldwide CEO, said.

The Delhi High Court had last week stayed India's state-owned telecom firm BSNL to award the contract till the next hearing, but had allowed the public sector company to continue with the evaluation process.

The case is scheduled to come up for hearing tomorrow.

Asked whether Motorola was right in challenging the entire process, he refused to comment, saying it was their decision.

He, however, added that: "in the entire evaluation process we (Ericsson) clearly met all technical or financial criteria put forward by BSNL."

BSNL had floated a tender for expanding GSM mobile services by adding 45 million lines at an estimated cost of more than Rs 20,000 crore. Ericsson had emerged the lowest bidder, followed by Nokia of Finland.

Ericsson, if it wins the bid after due evaluation, would get 60% of the contract, while the remaining 40% would go to Nokia.

"I hope a quick conclusion is reached...The company is looking at the expansion plan in India,"he said.