Ericsson, Nokia to Get BSNL Contract

Bharat Sanchar Nigam Limited (BSNL) looks set to award its $5 billion contract for 45.5 million GSM lines to rivals, Ericsson and Nokia, after Motorola withdrew its petition challenging its disqualification from the deal.

According to a BSNL official, as things stand now, Ericsson will get 60 percent, and Nokia the rest based on their bids for the contract.

In October last year, bids for the contract - the largest ever in GSM history - were put on hold, after Motorola, which was disqualified on technical grounds, challenged BSNL's decision in the Delhi High Court.

The BSNL official further said they will take about 10 days to tie up loose ends, and place equipment orders to the companies.

Meanwhile, in a statement, Motorola said it is withdrawing its case against the award, and looks forward to continued partnership with BSNL, India's third largest cellular operator.

India is the world's fastest growing mobile services market, with over 121 million GSM phone connections. Last month, 6.1 million new GSM users were added pan India to this already formidable number...