BSNL to place Rs 20,000 cr mobile order next week

New Delhi, May 2 (UNI) In a massive capacity-addition-move that would eventually add another 45.5 million GSM lines, state-run Bharat Sanchar Nigam Ltd (BSNL) today said that it will go for a Rs 20,000 crore mobile telephony order with Nokia and Ericsson next week.

If the move fructifies, this will be the world's largest single tender for 45.5 million lines of GSM telephones.

BSNL will be issuing Purchase Order to these companies and details are currently being worked out, sources said.

After the Purchase Order is issued and the companies accept it, they have to produce the bank guarantee and an Advanced Purchase Order for the first phase of the 45.5 million lines.

The first phase of 17.5 million lines of BSNL's GSM expansion is expected to be in place by the year-end.

The second and the third phases are for adding 14 million lines.

Currently BSNL has nearly two million GSM susbcribers.

The move is expected to ease pressure on BSNL's mobile service and quality of service. The government has announced a 500 million telephone target by 2010 and also on an average three million GSM additions per month from 2008-10.

UNI