India Intelligence Report

Reneging Huwawei Bids for BSNL


Chinese networking vendor Huwawei Technologies said that it will bid for a major Bharat Sanchar Nigam Ltd (BSNL) GSM contract even though it had reneged on its earlier CDMA contract after winning the bid by quoting the lowest price. It is not clear why BSNL, which had issued a show-cause notice to the USD 8 billion company, did not debar it from future contracts. Even the outcome of the show-cause notice is unknown.

Huwawei is embroiled in many controversies. It was accused by networking leader Cisco Systems of plagiarizing its system and stealing even the source code. Indian intelligence agencies also have "strategic concern" about the company and suspicious of it. Its investors are not known and suspected to be part of the Chinese military.

Undeterred by all these hurdles, Huwawei says that it will bid for the 60 million line GSM contract with 3rd generation services and that it awaits clearance to set up manufacturing facilities in India as required by the terms of the contract.

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