DoT seeks security check from BSNL for new procurement model | india | Hindustan Times
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DoT seeks security check from BSNL for new procurement model

india Updated: May 30, 2010 14:50 IST
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Department of Telecom has sought details from the state-run BSNL on the security measures it plans to put in place before shifting to a new equipment procurement model.

The state-run company said it has already replied to the government on this.

BSNL is working on a new system -- managed capacity model-- which is adopted by private players like Airtel. Once the PSU adopts this, it will outsource to a vendor, who will then take care of all its procurement needs.

The telco had decided to move to this model after its board scrapped its controversial tender of 93 million lines, the world’s largest contract for telecom equipment based on Sam Pitroda panel's suggestions.

Currently BSNL goes for huge and high value tenders based on projected demand of GSM lines spread over a minimum three-five year period.

Pitroda an advisor to the Prime Minister on infrastructure issues, was roped in to suggest ways to restructure the PSU to check its falling financials and marketshare.

In a letter to BSNL, DoT said, "BSNL appears to be in agreement (with the suggestion of Pitroda panel) and has started working on procurement details. However, BSNL being a PSU has to provide secure telecom services, which could be relied upon at the time of external aggression and internal disturbance."

"Whether the proposed new managed capacity model has been examined from the angle of resolution of national security before recommending such decision to DoT", asked the department while seeking details.

When contacted BSNL chairman Kuldeep Goyal said, "We have replied to the DoT over this. In fact, we give feedback to the department on regular intervals on this Pitroda panel suggestions implementations issue".

BSNL needs to get DoT approval for implementing the new procurement system. Once DoT is satisfied with the reply of BSNL, the matter will be put before the Telecom Commission, the policy making wing of the DoT.

The model will be based on the traffic (voice calls). The future orders for equipment will no longer be based on number of GSM lines. The new strategy will work out the mobile network capacity requirements on a quarterly basis and vendors will be given contracts to install this.