BSNL Receives Raja''s Approval For 23M Lines

New Delhi: The Communication and IT Minister, Mr A. Raja, on July 18, gave his clearance to BSNL to place an order for 23 million GSM cellular lines instead of the earlier declared 45.5 million lines. While the size of the contract is only 50 per cent of what BSNL had earlier planned, it includes both third-generation (3G) and second-generation cellular lines. The value of the contract has also been reduced from $107 per line to around $90. Mr Raja had wanted the price to be brought to under $100. Ericsson will get 60 per cent of the contract and Nokia the rest. The move would permit BSNL to increase its network capacity to some extent, though the reduced size may impact long-term growth. Ericsson has said that it would comment on the development after studying the revised conditions of the contract. Mr Raja urged BSNL to hold back the contract on the grounds that the company had not followed due process.