BSNL is planning to float a tender worth $3.5 billion to procure GSM lines reports the ET. A third of the tender will be awarded to ITI adds the report.

The PSU will procure 40 million GSM lines through the tender. According to the ET report, BSNL is yet to decide if it wants to go in for a single contract, or split it into two tenders for 20 million GSM lines over a two-year period.

The report adds that this contract will provide the company with sufficient capacity till 2013.“To take care of the long-term expansion requirements, BSNL has planned to expand its mobile network by a capacity of 20 million lines each in 2011-12 and 2012-13,” the telco said in its status report that was sent to the telecom department earlier this month.

This will be in addition to the 5.5-million GSM lines tender that the telco floated recently.