Ericsson ZTE Dissatisfied with cancellation of Thailand 3G project bid qualification

Ericsson and ZTE were initially disqualified from bidding for a nationwide 3G wireless broadband expansion program in Thailand with a 20 billion baht (about 653 million U.S. dollars), Beijing time January 21 morning. Thai state-owned telecoms enterprise TOT issued a statement that preliminary screening has largely ruled out Ericsson and ZTE's bid eligibility.　　The move sparked strong discontent among two companies. Ericsson accuses tot of unfair and opaque tendering, saying it could affect Thailand's image.　　ZTE plans to present the matter to Thai Prime Minister Abhisit Vejjajiva and says it will fight to the end if it is not treated fairly.　　Tot was reportedly unwilling to hand over the project to Ericsson fearing that it would rely on Swedish courts rather than Thailand's legal system in the event of a dispute, and ZTE could be disqualified for "unrealistic financial calculations". Joacimdamgard, president of Ericsson Thailand, said: "We believe that this result will make it difficult for tot to ensure competitive bidding in the process of seeking the best commercial and technical solutions in the next phase." "A total of four business alliances were involved in the bidding, and industry insiders said that if only two were allowed to participate, collusion would be inevitable, which could allow tot to pay more than 405 billion baht." (Chin Liang)