While cellular costs the world over are falling by around a fourth each year, state-owned Bharat Sanchar Nigam Ltd's costs are actually going up.

While BSNL set up 4 million lines in 2001 at an average cost of Rs 5,921 per line, the latest tender just opened for an additional 2.5 million lines has costs ranging from Rs 7,972 in Ericsson's bid to Rs 7,350 from Motorola and Rs 11,156 from ITI.

Even earlier in March, BSNL placed repeat orders at the 2001 price of Rs 5,921 per line.

Apart from the fact that costs have gone up in direct contrast to global trends, experts point out that typically when firms go in for repeat orders, costs also fall quite dramatically - this is so since the basic infrastructure, such as towers, is already in place.

Typically, while a first time installation could cost $130-140 per line (Rs 6,000-6,500), expansion costs are more in the region of $80 per line (Rs 3,800).

Despite sending a fax to BSNL chairman and managing director Prithipal Singh on September 9, and several telephonic reminders since, there has been no response from BSNL.

Several rates quoted by the bidders for the BSNL tender are also very similar, in many instances, right down to the last rupee.

The Ericsson India quote for 'SMPS power plant' is for Rs 170,500, ITI's quote is the same.

Ericsson's quote for 'supply, fabrication and erection of forms, vertical ladders, gantry if required for existing towers' is the same as ITI's Rs 72,930.

Interestingly, the other state-owned firm MTNL has been able to procure GSM equipment at much lower prices.

In 2000, MTNL's cellular system cost Rs 4,200 per line, and its latest quotes for a new system ranges from Rs 4,875 from Ericsson to Rs 5,450 by Motorola for the Mumbai operations and Rs 4,875 for Delhi.