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BSNL cancels GSM network contract with Huawei (India)
China’s Huawei lost 20 million lines GSM network contract with the state owned telecom operator of India, BSNL, after the latter cancelled it because of the unacceptable conditions imposed by Huawei.

However, Huawei has always denied the rumors allegedly linking it to Chinese government and military. BSNL has been asked by the Indian government to make sure that there are no software exploits within any equipment supplied by Huawei. BSNL might retender the contracts as the one with Ericsson covering the North and Eastern regions are also not finalized yet.

Earlier, it was reported that if there is any problem in Huawei tender, Alcatel-Lucent might take over the contract in the lines with Huawei’s tender prices.

For 25-million lines for the North Zone and 18-million lines for the East Zone, BSNL shortlisted Ericsson while Huawei was selected for 25-million lines for the South Zone. Initially, BSNL wanted to award the contract for Western zone to Huawei but later it contended that western zone was not a priority.

3G services and GSM will be provisioned for some 21 million lines. The total sum spent on these contracts is estimated to be US$6.5 billion.