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New Delhi, July 17: Bharat Sanchar Nigam Limited (BSNL) is likely to issue a fresh tender for additional GSM lines to meet capacity requirements and remain competitive in the 3G network.

“BSNL will go ahead with the current GSM tender, incorporating changes as directed by the department of telecom (DoT). A fresh equipment tender is likely to be issued soon,” said sources. The changes mean a smaller order with an emphasis on 2G technology.

This would take into consideration union members’ disquiet over capacity constraints and the emerging 3G technology, sources added.

BSNL is struggling to increase its equipment capacity to keep pace with the booming telecom market. Reducing the GSM order by 50 per cent would ensure enough capacity to meet growth in the mobile subscriber base only for the next 18 months, sources said.

Moreover, BSNL unions and associations are agitated because of the proposal to remove the 3G component from the GSM order. “Such a move will hit BSNL’s ability to compete with private players such as Bharti Airtel and Hutch, whose 3G networks are already in place,” said a senior union member.

Therefore, a new tender of around 80 to 90 million lines, with greater emphasis on 3G technology, would ensure that BSNL remains competitive and fulfil its capacity requirements for additional subscribers, sources added.

A new tender also means that Motorola and ZTE, who were disqualified on technical grounds from the current GSM order, can enter the new bidding order. But they will not be considered for the current reduced order.

Sources said the BSNL board has recommended reducing its tender for 45.5 million GSM lines to about 23 million. BSNL has also proposed to completely remove the 3G component, which constituted 50 per cent of the order, and restrict the current tender to 2G lines.