Sunday, August 7, 2011

CWG or Commonwealth Games data network cost - USD 130 million.

Source: TOI

How much a data network that can deliver video & data for a regional sporting event? Apparently, Indian officials paid 130 million for a data network.

* MTNL (government telecom player)  placed the bid at $130 million or Rs. 570.12 crores.
* Bharti Airtel (largest private player) offered for ~ $2.1million or Rs.10 crores.

But the officials awarded the contract to MTNL and MTNL sub contracted to HCL Infosystems at Rs.380.04 crore. So MTNL simply pocketed a neat ~200 crores just by bidding for the contract. I guess 99% went to the pockets of officials and ministers there.

HCL Infosystems used Cisco equipment and CBI wants to probe Cisco Systems in the future. I don't think this is by any way affects Cisco, as Cisco only works with Partners (which in this case HCL) and typically try to be 'risk free'.

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