BSNL 4G is coming: Tenders for 4G towers rolling out

BSNL 4G is finally coming; the state-owned telco is finally bringing 4G services for its customers. There are 50,000 new sites all across the north, west, south zone, and east where these 4G towers will be installed which has a budget of Rs 11,000 crore. Then there are 7,000 new sites alone in Mumbai and Delhi (MTNL zones) which will require an investment of Rs 8,697 crore. The tenders are out now, and the last date for contractors to apply is May 8. Also, the company is looking to upgrade its old 2G and 3G sites to 4G, which will entail a cost of another Rs 3,500 to Rs 4,000 crore.

Tender to Be Given to the Company With the Lowest Evaluated Price

After the bids are over, BSNL will offer the tender to the contractor with the lowest evaluated price for getting the job done. This contractor will be referred to as (L1) and will be asked to choose between three out of five zones for which the tender has been offered. This news is reported by Financial Express.

After the bidder has determined three preferred zones, then the remaining two zones will be provided to the bidder with the second-lowest evaluated price (L2) at the rate of (L1). If (L2) declines to the offer, then the offer will be made to (L3) at the (L1) price. If all the contractors decline the offer then (L1) will be offered one zone at the (L1) price and one zone will be given to the ITI Limited against the reservation quota. In case ITI declines the offer as well, then the last site will also be offered to (L1) at the (L1) price.

BSNL Planning to Expand Aggressively as Employee Costs Comes Down

Last year in October, the government allowed for a Rs 70,000 crore restoration package for the BSNL and MTNL. Out of this, Rs 29,937 crore was meant for voluntary retirement schemes available for employees above 50 years of age. Surprisingly, 78,300 BSNL employees and 14,378 MTNL employees went for the VRS option. Due to VRS, the monthly cost for BSNL employees has come down drastically.

This is the reason why the company is allowing its funds and resources to expand its 4G services all across India. BSNL is also going to receive a Rs 15,000 crore sovereign guarantee from the government so that it can raise money from the market. The company is yet to receive the guarantee but is expected to get it this month.

―Telecom Talk