BSNL seeks bids to set up Internet data centers

NEW DELHI, INDIA: Bharat Sanchar Nigam Ltd (BSNL) is exploring new revenue streams. The state-run telecom provider has sought bids from data center service providers to set up, own and operate Internet data centers on a revenue-sharing basis.

In this arrangement, based on revenue sharing, all the capex will be born by the bidders while BSNL will provide space to set up the centers, BSNL's EOI document said.

Though a clarification on what would be the potential value of the contract is still awaited, BSNL was quoted as saying by The Wall Street Journal that the bidders should provide a bank guarantee of 5 million rupees ($108,225) as security.

According a bid document (MM/IT/102009/000376 DATED 07.10.2009) posted on the company website, BSNL would like to have the centers in Indian cities including Jaipur, Ahmedabad and Mumbai; the northern cities of Faridabad, Ghaziabad and Ludhiana, the southern cities including Hyderabad, Ernakulam and Bangalore and in eastern India's Ranchi.

It is looking to have the data centers in pairs with one working as the disaster-recovery facility for the other, the document said.

According to a PTI report, BSNL will tap customers like IT and telecom firms to store their data in its server farm.

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