BSNL to invite bids for 8 mn modems

NEW DELHI: In one of the largest orders for broadband services globally, state-owned BSNL is all set to invite bids for 8 million Digital Subscriber Lines (DSL), also called modem. Sources said global majors Alcatel, Lucent, Nokia Siemens, Ericsson, ZTE, Huawei and others have already expressed interest to bid for the BSNL contract, expected to be worth several hundred million dollars. India has about 3.24 million broadband connections and the BSNL tender is more than twice the existing broadband subscriber of all operators combined.

More importantly, BSNL is offering more than broadband services. The company has informed prospective bidders that the modem should not only offer high speed internet access, but also carry content services such as IPTV, internet telephony and VoD (Video on Demand systems allow users to select and watch video and clip content over a network as part of an interactive TV system). It should also offer enterprise services such as Virtual Private Network over broadband. Sources said that tender conditions would also stipulate that a significant per cent of these modems are Wi-Fi-enabled.

It is also learnt that BSNL has called a meeting of all chip set vendors who manufacture DSLs to understand what the PSU terms ‘latest developments in DSL.’ “The meeting is scheduled in the next few days and the tender conditions will be finalised only after that,’’ sources close to the development added.

While the DSLs will cater to broadband services via fixedline, BSNL is also pushing for high speed internet through wireless (also called WiMAX services). WiMAX will also paves the way for high-speed wireless internet on laptops and high-end mobile handsets. The PSU has already earmarked Rs 3,000 crore for it and has decided to follow a franchisee model for its wireless broadband services.

The company has also floated an expression of interest to select the franchisees through a two-stage bidding process. As reported by ET first, BSNL has tied up with US-based WiMAX solutions firm Soma Networks through the franchisee model for what is considered the largest WiMAX deployment in the country covering four states in three circles — Gujarat, Maharashtra, Andhra Pradesh and Goa.

BSNL had earlier received some spectrum in the 2.5 GHz frequency band for its WiMAX rollout. It plans to roll out WiMax services in 70 cities across the country by the second half of 2008 and set up 50,000 Common Service Centres (CSCs) — ICT-enabled kiosks — across the country using WiMAX. The government has set itself a target of 20 million broadband lines in service by 2010 and BSNL is targeting a market share of about 60% of this figure.

Source : EconomicTimes