The Telegraph
Since 1st March, 1999
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Chaebols get bulk of BSNL orders

New Delhi, Nov. 8: Korean chaebols Hyundai and LG have grabbed a major share of one of the biggest tenders floated by Bharat Sanchar Nigam Ltd (BSNL) to procure mobile phones and fixed terminals based on wireless in local loop technology.

BSNL had floated the tender in August this year to procure 4.2 lakh mobile phones and 2.88 lakh fixed lines phones based on Code Division Multiple Access (CDMA) 20001x technology. Each mobile phone is priced at Rs 5,220 while their fixed line counterparts come for Rs 8,140. However, the company will decide the final price at which the phones will be offered to subscribers, after incorporating taxes and duties.

The tenders opened on Friday saw United Telecom Ltd of Bangalore and Hyundai emerge winners for mobile phones with a bid of Rs 219.25 crore, while government-owned Indian Telephone Industries (ITI) in association with LG bagged the tender for fixed line phones quoting Rs 235.64 crore.

Other winners in the mobile phone category include Terracom, a Delhi-based company (Rs 219.75 crore), Hyderabad-based Surana using LG technology (Rs 219.36 crore plus the annual maintenance cost) and Bangalore-based XL Telecom in association with technology from US firm Kyocera (Rs 230.33 crore).

Bidders who failed to make it in the mobile category include ARM, ITI and Himachal Futuristic Communications Ltd.

Other winners in the fixed line category were Surana (Rs 235.64 crore), Goa-based Bhayanaga Metals (Rs 235.69 crore) both using LG technology, and UTL with Hyundai technology (Rs 262.78 crore). The losers were ARM, Terracom, XL, HFCL and Bharti.

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