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2012 Kick Off BSNL/VMC WiMAX Rural Project in India.

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Presentation on theme: "2012 Kick Off BSNL/VMC WiMAX Rural Project in India."— Presentation transcript:

1 2012 Kick Off BSNL/VMC WiMAX Rural Project in India

2 Proprietary Information. BSNL: Company Overview 2 Bharat Sanchar Nigam Ltd (BSNL) was established in October 2000 Worlds 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. Indias largest fixed-line subscriber base. BSNL is also India's largest ISP, representing 57.5% of the total.

3 Proprietary Information. Our Partner: VMC Systems Limited Year of Establishment: 2002 Headquarter: Hyderabad, India Line of Business: Design, Develop and Manufacture Power Conversion Products, Telecom Equipment, CPEs, Turnkey Telecom Infrastructure Solutions & Services, Telecom Software Solns & IT Services Telecom 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 Converters Power Conversion Products: AC/DC Adapters and Computer Power Supplies, 12V SMPS Units, SMPS Rectifier Modules and Power Systems CPEs: ADSL2+ CPEs, CLIP Phones, GE-PON /G- PON ONU / ONTs, CDMA IFWT / FWT and NIC (USB Type) & WiMAX CPEs.

4 Proprietary Information. BSNLs WiMAX Projects 1 st phase rural project BST ( Gemini, Huawei) First Urban WiMAX project for Kerala and Punjab BST (Huawei,Telsima) 2 nd phase rural tender – 7000 BST (total estimated for WiMax BST only over USD100M All projects are E2E full turn key, including technical support for 5 years after warranty Rural project intends to provide broadband connectivity to Rural India Locations with poor infrastructure and in many cases geographically remote Local Partner is a must! 4

5 Proprietary Information. How did we select our Partner? Current activity in BSNL and success rate in BSNL tenders Presence in Delhi Ability to execute complicated projects Financially stable company Agreed MOU to be signed before tender, includes: Financials terms Responsibilities of each Party during the tender process, project implementation, support during the project life cycle Final contract will be based on MOU agreed terms 5

6 Proprietary Information. Tendering 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 BST Tender release, vendors meeting and tender clarifications, submission ( ) Tender technical evaluation by BSNL ( technical compliance) Bid price opening and bid price evaluation 6

7 Proprietary Information. Tendering Process (2) Bid price results: Aster, India & Runcom – Israel rejected due to no Wave-2 certificate In order to get the PO from BSNL, the price of L2,3,4 should be reduced to L1 price 7 S.No. FRONT BIDDER TECHNOLOGY - BTS TECHNOLOGY - CPE TOTAL BID VALUEProject portion 1Gemini, India Point Red Telecom, India Point RedUSD204,789,50340% BST 2ZTE, China ZTEUSD222,061,38925% BST 3ICOMM, IndiaTelsima, USAIcommUSD227,975,86220% BST 4VMC, IndiaAlvarion Ltd., IsraelGemtekUSD229,519,81015% BST 5Spanco, IndiaSamsung, Korea Modacom, Informats USD249,935,498 6TCIL, IndiaMotorola, USAMotorolaUSD312,552,207 7Huawei, China HuaweiUSD344,785,058

8 Proprietary Information. Tender Award LOI was issued by BSNL on late In order to get the PO, bidder should open the PBG. Gemini- got the LOI ZTE – got the LOI ICOMM – got the LOI VMC – no LOI was issued Some legal issues related to custom declaration in other projects were raised against VMC. This put our project on hold. BSNL cant 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. 8

9 Proprietary Information. BSNL: Mobile WiMAX Tech Support Installation Services Network Design Star Suite Home Agent ASN Gateway USB/PC Card Self Install CPE Outdoor CPE Alvarion End-to-End Solution BSNL WiMAX Network (Rural Areas) Macro Outdoor Base Station AAA Server - Rural Deployment: 959 BS Sites - Spectrum: 2.5GHz - CPEs: 110K

10 Proprietary Information. Contract and Execution Contract based on MOU terms was signed with VMC Final LC terms agreed VMC issued the PO during Q1 / LC was opened. Delivery of equipment during Q2/3 of 2011 Training and initial joint implementation by VMC and Alvarions technical team Alvarion and VMC teams are jointly participating in technical meetings with BSNL VMC technical team is gaining experience, however still require close assistance from Alvarions technical team BST failure. Logistical issues. 10

11 Proprietary Information. CircleBase Station Jammu & Kashmir108 Himachal Pradesh128 Chennai15 Orissa538 North East I82 North East II78 Source: Census 2001 (in million) BSNLs Rural Project II Deployment RAJ HP UP(W) BH OR KAR TN HR MPWB AS CHN KOL GUJ UP(E) KL MUM PB DL MH AP NE Alvarion J&K

12 Proprietary Information. Alvarions WiMAX Solution for BSNL

13 Proprietary Information. Alvarions Star Management Suite for BSNL The first large scale implementation of Alvarions Star Management Suite with high availability and geo-redundancy

14 Proprietary Information. Next Plans Possibly more orders as Gemini did not supply all quantity Spectrum issues TD LTE Good bond with VMC Further business with VMC. Wi-Fi projects, Video Surveillance projects VMC can be a good partner for DAS. 14

15 Proprietary Information. Lessons Learned Know the customer, their roll, requirements, people Know your Partner Do not rely only on your Partner- have direct channels to the customer Conflict 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 committed As a supplier of major project components, make sure that the project is successful 15

16 Thank You Name:Moshe Faran Phone:


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