State run PSU BSNL received a short in the arm as an independent panel appointed by the firm to investigate the disqualification of Nokia Siemens Networks (NSN) on technical grounds upheld the decision of the operator.

The independent panel comprising of former Central Vigilance Commission (CVC) officials Mr T. S. Krishnamurthy and Mr B. B. Tandon cleared BSNL of any wrong doing in the selection process.

The independent panel was formed following NSN approaching the CVC to investigate its disqualification. NSN now has to submit its reply on the report findings within three days.

NSN had also approached the Punjab and Haryana High Courts as well as the AP High Court. The AP HC had directed a stay in the tender process for the Southern region. The Punjab and Haryana HC had dismissed NSN’s petition asking it to approach the Courts only if it was not satisfied with investigation in the matter.

With the independent panel giving a clean chit to BSNL it remains to be seen if NSN will now approach the High Courts again. But if it does so now there is a fear that it may be perceived as a spoilsport in BSNL’s network capacity expansion plans. BSNL is facing capacity crunch in some semi-urban areas and the PSU is losing market share significantly owing to its inability to provide new connections in such areas. BSNL Union had earlier accused vested interested of delaying the network expansion plans of the company to benefit private operators.

Meanwhile it is expected that with the dust settling down on controversies surrounding the technical selection, the focus would now shift to financial negotiations with the shortlisted vendors. Ericsson has been shortlisted to supply equipments for the Northern and Eastern regions while Huawei has been selected to supply telecom gear for the Southern region. The decision for the Western region is yet to be taken.