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Indian defence forces' fibre network cost escalates

bhagat

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Dec 29, 2010
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Vacation of spectrum by the Indian defence forces is likely to be delayed, as state-owned operator BSNL, which has been given the mandate to lay an alternate optical fibre network, is finding it difficult to undertake the project because of the sharp escalation in costs, reports the Business Standard. This would be a setback to the telecommunication ministry, as it has told operators that additional spectrum would be given by way of auction, after it was vacated by defence forces. The INR 91.75 billion project cost is likely to be higher by more than INR 40 billion, BSNL has informed the government and expressed concerns about implementing it. The whole project cost will be borne by the government. The project could help BSNL to tide over its losses as 7.5 percent of the total project cost would go its coffers. So far, no work has started on the project. The matter has been referred to an inter-ministerial group (IMG). BSNL had made a presentation to the group, saying that the additional conditions put up by the defence authorities have escalated the cost. Unless the IMG takes a decision on the matter, BSNL will not be able to go-ahead with the project. The Department of Telecommunications (DoT) and the defence ministry had signed a memorandum of understanding in 2009, according to which the armed forces were to vacate 25 MHz for 3G and 20 MHz for 2G spectrum.

DoT was to set up exclusive and dedicated network for defence. This will happen in a phased manner and will be linked to the completion of the alternative network that the DoT is building for the defence forces. While the armed forces have already freed up 15 MHz 3G spectrum, which was sold during last year's auctions, and also vacated 15 MHz 2G spectrum, which has been allocated to new operators, the remaining airwaves, 10 MHz spectrum in 3G (for two operators) and 5MHz in 2G, will be released only after the alternative optic fibre network being built by BSNL is completed. The cost has escalated as the army now wants 48 (F) optic fibre cable in place of 24 (F). It also wants a three year warranty and want intrusion proof network. During the signing of the MoU, no such conditions were discussed. In total, the telecommunication ministry is seeking that the armed forces vacate up to 80 MHz of airwaves for commercial telephony. The defence ministry had also threatened it would not release additional airwaves for commercial use. It said that the telecommunication department had failed to meet all timelines on building an alternative communication network for the armed forces, and warned that it could result in the services stopping all vacation of airwaves.

Indian defence forces' fibre network cost escalates - Telecompaper
 
The cost has escalated as the army now wants 48 (F) optic fibre cable in place of 24 (F). It also wants a three year warranty and want intrusion proof network. During the signing of the MoU, no such conditions were discussed.

What is new here? They are doing this in every project. Changing the requirements at the middle of development and continuously do so, resulting huge cost over run and delays. Now some people blame the developer.



Fibre is expensive.. But I am surprised as usual.. no private sector is involved..

I think it was a tender and BSNL won it while private companies participated as well. BSNL has huge infrastructure and facilities trough out India certainly they got some advantages.
 
Well BSNL and DOT are just thinking about it ??/ I think it would have been better if DOT would have started the project on time, the our armed forces wouldn't be able to change the requirements. Although this new requirement is good, but it should be their first choice.
 

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