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

2012 Kick Off

BSNL/VMC WiMAX Rural Project in India

Proprietary Information.

BSNL: Company Overview

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• Bharat Sanchar Nigam Ltd (BSNL) was established in October 2000

• World’s 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.

• India’s largest fixed-line subscriber base.

• BSNL is also India's largest ISP, representing 57.5% of the total.


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.


BSNL’s WiMAX Projects

•1st phase rural project -2000 BST ( Gemini, Huawei)

•First Urban WiMAX project for Kerala and Punjab- 1800 BST (Huawei,Telsima)

•2nd 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!

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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

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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 (25.8.2009)

•Tender technical evaluation by BSNL ( technical compliance)

•Bid price opening and bid price evaluation

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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

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S.No.

FRONT BIDDER

TECHNOLOGY - BTSTECHNOLOGY -

CPETOTAL BID VALUEProject portion

1Gemini, IndiaPoint Red Telecom, India

Point RedUSD204,789,50340% - 2800 BST

2ZTE, ChinaZTE, ChinaZTEUSD222,061,38925% - 1750 BST

3ICOMM, IndiaTelsima, USAIcommUSD227,975,86220% - 1400 BST

4VMC, IndiaAlvarion Ltd., IsraelGemtekUSD229,519,81015% - 1050 BST

5Spanco, IndiaSamsung, KoreaModacom, Informats

USD249,935,498

6TCIL, IndiaMotorola, USAMotorolaUSD312,552,207

7Huawei, ChinaHuawei, ChinaHuaweiUSD344,785,058


Tender Award

•LOI was issued by BSNL on late 2009 . 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 can’t 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.

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BSNL: Mobile WiMAX

Tech Support

Installation Services

Network Design Star Suite

Home Agent

ASN Gateway

USB/PC Card

Self Install CPE

Outdoor CPE

AlvarionEnd-to-End

Solution

BSNL WiMAX Network

(Rural Areas)

Macro Outdoor Base Station

AAA Server

-Rural Deployment: 959 BS Sites -Spectrum: 2.5GHz

-CPEs: 110K


Contract and Execution

•Contract based on MOU terms was signed with VMC

•Final LC terms agreed

•VMC issued the PO during Q1 / 2011. LC was opened.

•Delivery of equipment during Q2/3 of 2011

•Training and initial joint implementation by VMC and Alvarion’s 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 Alvarion’s technical team

•BST failure.

•Logistical issues.

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CircleBase Station

Jammu & Kashmir108

Himachal Pradesh128

Chennai15

Orissa538

North East I82

North East II78

Source: Census 2001 (in million)

BSNL’s Rural Project II Deployment

RAJ

HP

UP(W)

BH

OR

KAR

TN

HR

MP WB

AS

CHN

KOL

GUJ

UP(E)

KL

MUM

PB

DL

MH

AP

NE

NENE

AlvarionJ&K


Alvarion’s WiMAX Solution for BSNL


Alvarion’s Star Management Suite for BSNLThe first large scale implementation of Alvarion’s Star Management Suite with high availability and geo-redundancy


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.

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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

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Thank You

Name:Moshe Faran

E-Mail:[email protected]

Phone:0544228451

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

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