Lots of Interest in BSNL Project

By Mark Evans | Published: September 10, 2008

With a $10-billion project on the table, it comes as no surprise that there’s plenty of interest from telecom equipment suppliers in doing business with BSNL.

According to Business Line, six suppliers have made bids – Ericsson, Nokia Siemens, Alcatel Lucent, ZTE, Huawei and Nortel. Motorola did not submit a bid even though it went to court for being disqualified from bidding for the previous contract in 2006.

For more details, check out Business Line.

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  • yes4aapl

    BSNL had divided the project into four parts. Part 1 includes setting up network for GSM based 2G mobile services.

    For this, South zone received bids from Huawei, ZTE and Nortel
    ======
    NT bid only for that.
    HW and ZTE they bid half price of NT.
    only 2 vendors can get the deal.
    Looks like NT will get Zero here.
    Zero from BSNL
    NT did not bid for 3G there.
    Zero from last tender in China /only HW ZTE and ALU got deals/
    Ericson replacing NT gears in Vietnam /$450 mill/
    Ericson replacing NT faulty gears/ because bad grounding/ in BSNL this year
    Huawei replacing NT gears at T Mobile Germany
    http://www.huawei.com/publications/view.do?id=2…
    O2 Germany GmbH & Co. OHG will rip out all of its Nortel Networks Ltd. GSM and UMTS base stations and replace them with equipment from Huawei
    http://www.unstrung.com/document.asp?doc_id=151844
    Nortel gave up on WiMax, Nortel sold out UMTS,
    PBK abandoned by customers /BT/
    Verizon, Sprint delay purchasing…
    LTE can be in 2012!
    It does not look good, does it?
    NT admitted that will use $1 bill from deferred rev in 2008 and that pool of an “old revenue” mostly from the restatements in 1999-2000 / $3.5 bill / is shrinking
    Q2 cc shows how much that pool is lower and Q2 re[port showed decling new orders /$500 mill/
    Oder vendors /CIEN/ expects the slow down for next few quarters
    in that situation it is easy to speculate that not only H1 +H2 orders will be lower by more than $1.5 bill but also Nortel will recognize more than $1 bill in defer rev. draining that pool of revenue too.
    in other words NT will start the new year with $2.5 bill lower pool of revenues.
    Instead of warning the public Nortel trumpets single digit business growth which is not true!
    How Nortel can grow business with orders declining $1.5 bill in 2008?
    Showing bigger revenue now because recognizing deferred rev from the accounting frauds in 2000-2003 is an irony.
    Nortel's ex CEO and ex CFO are charged for criminal acts and are released on bail. Trials should be soon.
    Sorry I disturbed the happy talk about Nortel and all the blame for NT making new all time lowest levels put on hedge funds manipulation of the stock. Analysts asked Mike few times if he can acknowledge that the growth he projected is not “organic growth”. Analysts know the new accounting trick Nortel used during the last CC.
    Analysts know perfectly that 2009 will have much lower revenues. If they know that why Nortel denies common knowledge?
    The rules for a public company are simple and based on simple logic
    A public company has to inform analysts_public about any significant fact that changes business perspectives.
    Other companies which had restatements of revenues report now how restated revenues affect margins. Nortel should do the same. Margins improve when deferred revenues are recognized, don't they? That's ok but company should calculate and report both situation. with and without.
    That's OK that new CFO decided to recognize deferred revenues /as I say most of them are from restatements/ Sure that they have to be recognized but with public knowledge about how much and what.

  • Lonely Ops Guy

    BSNL again? It can be a 10bn contract…but…at what margins?

  • broadbandbill

    LOG,

    Don't worry about the margins; Nortel will not get even close but they will be used to lower someone else’s margin. In fact that should be the new tag line: Nortel – Making Business Simpler for Others…–bb

  • Observer

    The problem with doing business in India is they don't recognize that companies need to make a profit. They think everyone is made of money. So many palms have to be greased, it will end up as a losing proposition for whomever “wins”. I don't even know why Nortel bid on this.

  • Lonely Ops Guy

    Errr…..because:
    a) NT is stupid?
    b) Because everyone else is bidding?
    c) Because the purpose of money is to be spent…..
    d) Because NT will make the other vendors look good?
    e) All of the above.
    f) None of the above.

  • yes4aapl

    If you read the article carefully you will see that NT is not competeing with Ericsson, Nokia Siemens, and Alcatel Lucent.
    Nortel submitted his bid against Huawei and ZTE
    What chances Nortel has in that part?
    from your link
    Four parts

    BSNL had divided the project into four parts. Part 1 includes setting up network for GSM based 2G mobile services.

    For this, South zone received bids from Huawei, ZTE and Nortel.

    and I wander if anyone can explain that article
    http://www.telegraphindia.com/1080531/jsp/jhark…
    May 30
    “We are replacing Nortel machinery with Ericsson equipment since the past one month. We expect the work to be over by mid-June,” said R.K. Mishra, the general manager, BSNL, Jamshedpur.

  • broadbandbill

    LOG,

    a/a) Nortel is NOT stupid, just irrelevant.

    d) Nortel will make other vendors look good by the virtue of their desperation to win anything…

    x) The biggiest winner will be BSNL; they know their negotiating position is solid!

  • Link

    The number of wireless subscribers in India exceeds North America, growing by X millions each month. However, the revenue per subscriber is 1/10th or less that of North America, something like $6/month/subscriber, I believe. It takes porportionally the same amount of infrastructure to support these subscribers regardless of region, which porporotionally costs equipment vendors the same to produce (except in China where the wage of an R&D engineer, etc is a tenth that of Europe or North America). If you are looking for topline or global market share, India's a place in which to compete. If you are looking for profitability or cash flow – forgetaboutit. As ALU, NSN, Eric get squeezed in their home turf, I wonder if they will continue to subsidize business in India on an incremental basis or concede to the Chinese. And as for the Chinese, how long before these ongodly trade deficits drives up the value the Yuan vs $US and Euro, and taking with it their cost advantage. Economics has a way of reaching an equilibrium, you know.

  • ex-nortel^2

    … except in China where the wage of an R&D engineer, etc is a tenth that of Europe or North America

    LOL. A Chinese R&D engineer? Talk about an oxymoron.

  • Clint

    I thought all they used in India were strings and tin cups?
    I guess that is worth about six bucks per month.
    BTW…the wage of a chinese engineer is not a tenth of a north american equivalent. Matter of fact it is 7/10 and fast approaching parity.
    Maybe you are talking about a chopsticks factory?

  • Clint

    I thought all they used in India were strings and tin cups?
    I guess that is worth about six bucks per month.
    BTW…the wage of a chinese engineer is not a tenth of a north american equivalent. Matter of fact it is 7/10 and fast approaching parity.
    Maybe you are talking about a chopsticks factory?

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