2BSNL: Company Overview Bharat Sanchar Nigam Ltd (BSNL) was established in October 2000World’s 7th Largest Integrated telecoms operator offering fixed-line (local and DLD/ ILD), fixed-wireless, mobile and broadband services.BSNL has network operations 21 of India's 23 regional circles outside of Delhi and Mumbai.India's fifth largest GSM operator.India’s largest fixed-line subscriber base.BSNL is also India's largest ISP, representing 57.5% of the total.
3Our Partner: VMC Systems Limited Year of Establishment : 2002Headquarter : Hyderabad, IndiaLine of Business : Design, Develop and ManufacturePower Conversion Products, Telecom Equipment, CPEs, Turnkey Telecom Infrastructure Solutions & Services, Telecom Software Solns & IT ServicesTelecom Products : DWDM, STM-1, STM-4, STM-16 and STM-64, DXC, G-PON / GE-PON OLT, NGN Equipment, WiMAX Base Stations, Carrier Ethernet Networks (MPLS), Microwave Radio Equipment and Media ConvertersPower Conversion Products : AC/DC Adapters and Computer Power Supplies, 12V SMPS Units, SMPS Rectifier Modules and Power SystemsCPEs : ADSL2+ CPEs, CLIP Phones, GE-PON /G- PON ONU / ONTs, CDMA IFWT / FWT and NIC (USB Type) & WiMAX CPEs.
4BSNL’s WiMAX Projects1st phase rural project BST ( Gemini, Huawei)First Urban WiMAX project for Kerala and Punjab BST (Huawei,Telsima)2nd phase rural tender – 7000 BST (total estimated for WiMax BST only over USD100MAll projects are E2E full turn key , including technical support for 5 years after warrantyRural project intends to provide broadband connectivity to Rural IndiaLocations with poor infrastructure and in many cases geographically remoteLocal Partner is a must!
5How did we select our Partner? Current activity in BSNL and success rate in BSNL tendersPresence in DelhiAbility to execute complicated projectsFinancially stable companyAgreed MOU to be signed before tender, includes:Financials termsResponsibilities of each Party during the tender process, project implementation, support during the project life cycleFinal contract will be based on MOU agreed terms
6Tendering Process (1)Alvarion lost earlier BSNL WiMAX tender due to Indoor BST price (2008 tender)Discussion with BSNL to modify the spec so it can suit our Outdoor BSTTender release, vendors meeting and tender clarifications, submission ( )Tender technical evaluation by BSNL ( technical compliance)Bid price opening and bid price evaluation
7Tendering Process (2) Bid price results: Aster, India & Runcom – Israel rejected due to no Wave-2 certificateIn order to get the PO from BSNL , the price of L2,3,4 should be reduced to L1 priceS.No.FRONT BIDDERTECHNOLOGY - BTSTECHNOLOGY - CPETOTAL BID VALUEProject portion1Gemini, IndiaPoint Red Telecom, IndiaPoint RedUSD204,789,50340% BST2ZTE, ChinaZTEUSD222,061,38925% BST3ICOMM, IndiaTelsima, USAIcommUSD227,975,86220% BST4VMC, IndiaAlvarion Ltd., IsraelGemtekUSD229,519,81015% BST5Spanco, IndiaSamsung, KoreaModacom, InformatsUSD249,935,4986TCIL, IndiaMotorola, USAMotorolaUSD312,552,2077Huawei, ChinaHuaweiUSD344,785,058
8Tender AwardLOI was issued by BSNL on late In order to get the PO, bidder should open the PBG.Gemini- got the LOIZTE – got the LOIICOMM – got the LOIVMC – no LOI was issuedSome legal issues related to custom declaration in other projects were raised against VMC. This put our project on hold .BSNL can’t issue the LOI as long as there is an open investigation.L5 (Spanco) did its outmost to get the LOI instead of VMC.Issue was resolved at 2010 year end and LOI was issued to VMC.
10Contract and Execution Contract based on MOU terms was signed with VMCFinal LC terms agreedVMC issued the PO during Q1 / LC was opened.Delivery of equipment during Q2/3 of 2011Training and initial joint implementation by VMC and Alvarion’s technical teamAlvarion and VMC teams are jointly participating in technical meetings with BSNLVMC technical team is gaining experience, however still require close assistance from Alvarion’s technical teamBST failure.Logistical issues.
11BSNL’s Rural Project II Deployment RAJHPUP(W)BHORKARTNHRMPWBASCHNKOLGUJUP(E)KLMUMPBDLMHAPNEAlvarionJ&KCircleBase StationJammu & Kashmir108Himachal Pradesh128Chennai15Orissa538North East I82North East II78Source: Census 2001 (in million)
13Alvarion’s Star Management Suite for BSNL The first large scale implementation of Alvarion’s Star Management Suite with high availability and geo-redundancy
14Next Plans Possibly more orders as Gemini did not supply all quantity Spectrum issuesTD LTEGood bond with VMCFurther business with VMC. Wi-Fi projects, Video Surveillance projectsVMC can be a good partner for DAS.
15Lessons Learned Know the customer, their roll, requirements, people Know your PartnerDo not rely only on your Partner- have direct channels to the customerConflict of interest with the Partner (bid control)Define responsibilities properly. Commit to what we can deliver (contract)Do not leave the Partner by himself – do more than what is committedAs a supplier of major project components, make sure that the project is successful