BSNL, MTNL cancels 4G upragadation tenders, likely to issue fresh ones excluding Chinese companies

New Delhi [India], July 1 : Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) on Wednesday cancelled their 4G upgradation tenders issued in March.
The decision by the two state-owned telecommunications service providers has come after the DoT decided to issue fresh specifications for the upgradation process.
"Tender for planning, engineering, supply, installation, testing, commissioning and annual maintenance of 4G mobile network in North, South, East and West zones of BSNL and Delhi, Mumbai LSA of MTNL on turnkey basis issued on March 23, 2020, is hereby cancelled," the notice issued for tender cancellation read.
According to officials, a fresh tender will be issued in the place of the ones scrapped today. The fresh tender is likely to exclude Chinese companies from providing equipment for the upgradation process.
After the violent face-off between Chinese and Indian troops in Galwan Valley, Ladakh last month, the DoT had asked BSNL and MTNL not to use Chinese equipment in the upgradation of its 4G network.
The DoT may also ask private telecommunication companies not to use equipment made by the Chinese companies. The cancellation of tenders is likely to have a huge impact on companies such as Huawei and ZTE.
Earlier in mid-June, the Indian Railways had also cancelled a contract of Rs 471 crore given to Beijing National Railway R & D Institute of Signal for a project on the Eastern Dedicated Freight Corridor.