Nokia Solutions Networks Places Lowest Bid for Mahanagar

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Nokia Solutions Networks places 0 0 StumbleUpon lowest bid for Mahanagar Telephone Submit Nigam Ltd's GSM expansion Tw eet Recommend

Kalyan Parbat, ET Bureau Feb 6, 2014, 11.15AM IST

KOLKATA: Finland's Nokia Solutions Networks (NSN) has pipped France's Alcatel Lucent, Chinese rivals Huawei Telecommunications and ZTE Corp to emerge as the lowest bidder for supplying 2G and 3G gear for Mahanagar Telephone Nigam Ltd's Rs 600-crore GSM network modernisation plans, a director of the state-run telecom company told ET.

(MTNL, which runs cellular…)

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RELATED ARTICLES MTNL, which runs cellular services in Delhi and Mumbai, needs to reinforce networks urgently to hold on to its dwindling GSM customer base, which was under 3.5 million in December 2013. Alcatel-Lucent, NSN, Huawei, ZTE in race for 400-cr MTNL... The much belated network modernisation is crucial as the state-run telco, which has been losing millions of September 25, 2013 customers to private sector rivals, will now be able to upgrade core networks to support higher data speeds and the latest smartphone applications. Little cost benefit from MTNL-BSNL tie January 14, 2005 Another top MTNL executive said, based on bid opening figures , Huawei is the second-lowest (L2) bidder in MTNL to rejig marketing, customer care Delhi and Mumbai while ZTE had emerged the third lowest (L3) bidder in Delhi and the fourth-lowest (L4) supplier in Mumbai. Alcatel Lucent is the L3 bidder in Mumbai. operations in Delhi... July 11, 2011 At present, Nokia Solutions Networks and Alcatel-Lucent maintain parts of MTNL's 2G and 3G networks, respectively. A spokesman of NSN's India unit confirmed that the company had received a "communication IN-DEPTH COVERAGE from MTNL that it is the L1 bidder for the 2G and 3G network expansion tender in Delhi and Mumbai". Mtnl The company, however, declined to reveal bid details saying its prices and contract details are confidential Alcatel-lucent with customers. Alcatel Lucent, Huawei and ZTE did not reply to ET's emails seeking a confirmation on their bid status.

Industry circles familiar with the matter, however, said the difference between NSN and Huawei's price bids is "wafer thin", as the Chinese networks vendor is learnt to have also put in a very aggressive bid. However, Huawei will be asked to match NSN's price bid only if the Finnish vendor fails to deliver equipment to MTNL.

Under terms of the GSM tender, MTNL will buy 2G and 3G systems from the cheapest supplier for its proposed 1.6 million-line network expansion. This apart, the lowest bidder will also supply radio access network (RAN) and intelligent network systems.

The latest developments also come on the heels of an empowered inter-ministerial panel asking the government to give soft loans to MTNL and Bharat Sanchar Nigam Ltd to help both lossmaking state-run telcos pay a portion of their staff salary bills.

Post-Cabinet approval, MTNL is likely to receive about a Rs 1,000-crore loan over a 10-year span, starting with an initial Rs 390-crore tranche this fiscal year ending March 31.

Last September, MTNL and big brother BSNL also resolved to combine resources to grab more enterprise customers. Both operators had inked a pact to share their telecom infrastructure for providing joint services to corporate customers. The partnership would take care of mobile communications, infrastructure sharing and enterprise business for information technology and telecom services.

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