Motorola turns down BSNL's offer on cellular contract

02 February 2007

New Delhi: The state-owned Bharat Sanchar Nigam''s (BSNL) interim formula to Motorola, to award 40 per cent of the 45.5-million line contract in the Delhi High Court to the latter was rejected by the US-based company.

The High Court has extended the stay on the mega GSM project until February 12. This would further hurt the state-owned company''s plans to ramp up its network, which is already running at almost full capacity.

The suggestion to clear 40 per cent of the total contract was made by the Additional Solicitor General, Gopal Subramanium, appearing for BSNL. Subramanium contended that as per the term of the contract 60 per cent of the project would go to the first lowest bidder and rest 40 would go to the second lowest bidder.

BSNL said if Motorola won the case, it would get a maximum of 60 per cent of the contract, and therefore, the balance should be cleared for awarding of contract and the PSU would be able to move ahead with its expansion plans.

Motorola''s lawyers did not accept this. Motorola had challenged its disqualification from the bidding process for supply of equipment to BSNL. Ericsson and Nokia had emerged as the two lowest bidders when BSNL opened the bids in October 2006.