It happened earlier in 2007 and history is set to repeat again this year as PSU BSNL, which says it is facing severe network capacity in some areas, is set to grant new order to Ericsson for supply of telecom gear in such areas.

The new contract is for 5.25 million GSM lines at a reported value of $ 500 million which results in an approximate value of $ 95 per GSM line, a price point relevant in 2007.

BSNL’s procurement policy allows it to procure up to 50 % of requirement from existing vendors. Earlier in 2007, when the PSU was facing similar network crunch due to delay in procurement of telecom gear, the operator had placed order with Ericsson.

The decision whether to accept BSNL’s order or not rests with Ericsson. And BSNL is not on a favourable pitch in terms of negotiation since its main priority is to overcome the capacity crunch.

Ericsson is already selected to supply GSM equipment in BSNL’s new tender for the Northern and Eastern region.  Of global telecom vendors such as Alcatel-Lucent, Nortel, NSN and ZTE, who participated in the GSM tender of BSNL, only Ericsson and Huawei managed to scrap through BSNL’s technical criteria.