Financial Daily from THE HINDU group of publications
Saturday, Mar 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Mar 25, 2006 |
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Telecommunications Marketing - Strategy Bharti also rings expansion tone Thomas K. Thomas
On fast track Biggest single procurement in the world Can seal deal faster than BSNL, perhaps in weeks Major vendors keen on local manufacturing
New Delhi , March 24 In a bid to take on the challenge by State-owned Bharat Sanchar Nigam Ltd (BSNL), Bharti Tele-Ventures has invited bids for buying GSM equipment for more than 60 million lines for its expansion plans across the country over the next few years. This is expected to be the largest single procurement of telecom gear in the world, even bigger than the one announced by BSNL. Leading manufacturers including Nokia, Motorola, and Ericsson have already put in their bids in response to Bharti's Request for Proposal (RFP). Bharti operates cellular services across 23 circles through the Airtel brand. With more than 18 million subscribers, the company has nearly 29 per cent market share. At present, Nokia and Ericsson manage most of Airtel's cellular infrastructure. Bharti had entered into a multi-million dollar deal with these two companies to outsource network management. When contacted, Bharti officials declined to comment. With more than 4 million new subscribers being added, operators are looking to quickly ramp up its mobile infrastructure, especially in the rural areas. The Government has set a target of 250 million telephone lines by end-2007. Equipment vendors including Nokia, Ericsson, Alcatel and ZTE have already announced major investments in setting up local manufacturing in India. In comparison to BSNL, private operators like Bharti have an advantage as they do not have to go through the tendering process. While Bharti has invited expression of interest from the equipment vendors, the company can negotiate with any of the manufacturers on its own. While BSNL is hoping to conclude the deal with two successful bidders over the next five months, Airtel can sign an agreement with the manufactures within weeks.
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