Nortel bags $100 mln GSM line contract in India

NEW DELHI, March 25 (Reuters) - Telecom equipment maker Nortel Networks Corp (NT.TO) NT.N said on Tuesday it had won an order worth more than $100 million from Indian state-run telecoms firm Bharat Sanchar Nigam Ltd (BSNL) to supply GSM lines in the southern part of the country.

Nortel said in a statement the work was underway and expected it to be completed towards the end of 2008.

A spokesman for Nortel in India, when contacted by Reuters, declined to talk about the number of lines and the pricing.

BSNL, which provides fixed-line and mobile services across much of India, has been hampered by inadequate infrastructure as it looks to take on a string of fast-growing and more nimble private players.

In 2006, BSNL called for bids to supply 45.5 million GSM wireless lines, but the tender was later reduced to 23 million lines after the government insisted on lower pricing.

Last September, the firm awarded an order worth $1.3 billion to lowest bidder Ericsson (ERICb.ST) to supply 13.1 million mobile lines, while the remainder was passed over by both the Swedish firm and second-lowest bidder Nokia Siemens [NSN.UL].

BSNL Chairman Kuldeep Goyal said in November the company could consider awarding GSM line contracts to other companies, including Nortel.

The government has said BSNL plans to invest 600 billion rupees ($15 billion) over three years to double its turnover.

($1=40.1 rupees) (Reporting by Devidutta Tripathy, Editing by Mark Williams)