In an attempt to face-down the Indian mobile operator, Bharat Sanchar Nigam Ltd (BSNL), Nokia Siemens Networks (NSN) looks like its failing to gain any share of a US$2 billion supply contract for infrastructure equipment.
The deal, for around 22 million GSM lines, has already seen Ericsson being awarded 60 percent of the contract after submitting the lowest bid. NSN was due to receive the remaining 40 percent but must meet Ericsson's price in order to comply with the tender conditions.
Insiders claim that Ericsson has quoted a price of US$91 per line--which might be a contributing factor behind the recent announcement from the company over reduced margins--while NSN is holding it ground at US$177 per line.
Rumour has it that if NSN fails to move significantly closer to Ericsson's price they will be excluded and the entire contract could then be placed with the Swedish manufacturer.
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