BSNL GSM Tender – It Just Wont Die

The massive GSM tender for state run BSNL that was on and then off and then on and then off again for the past 5 years is again in the news. Originally, this was a 93 million line $10B deal that was eventually pared down to 15 million lines and $1B. Given how much money BSNL is losing, it is hard to imagine where they will come up with the money to pay the vendors. I think it is worth noting that the mobile subscriber base in India is potential overstated by as much as 30% if you only look at active SIM cards. BSNL is doing an online e-tender reverse auction. One other issue is that the tender has split India up into different zones so the award is not pan-India. BSNL claims the process is on track while the rumors are that it will yet again be scrapped because no one wants to participate and lose money, not even the Chinese.