The Indian state-run firm Bharat Sanchar Nigam Ltd [BSNL] is in the initial stage of bidding for a telecoms licensing being issued by the Tunisian government.

The North African nation has for years been on a path of privatization of state firms and partaking in efforts to attract foreign investment. If the bid is complete, BSNL will not be the first foreign firm in the Tunisian mobile market.

A few years back, a state-run Dubai telecoms company successfully bid for a 30% share in Tunisia Telecom [TT]. TT is one of two Tunisian mobile providers. The other being Tunisian which has always been privately owned. After another public offering, the same Dubai firm has increased its share in TT to a controlling 51%.

This offer is different from the one secured by Dubai. The Tunisian government is not privatization any state firms, but, rather, increasing domestic competition by issuing a license for both land-line and mobile service in 2G or 3G networks.

The Tunisian land-line service is currently uncompetitive and suffers from incredibly high charges that make long calls almost prohibitive for most Tunisians.

The new licensing, which will be for domestic and long-distance, and for a period of 15 years; will aid the reduction in costs.

A official, who wished to remain anonymous, spoke with the Bow Jones news wire, “The issue is under finalization by the (BSNL) board. It is a composite license and the deadline (for submitting the bids) is May 5.”