VZCZCXYZ0005
RR RUEHWEB

DE RUEHNE #1121 0670613
ZNR UUUUU ZZH
R 080613Z MAR 07
FM AMEMBASSY NEW DELHI
TO RUCPDOC/USDOC WASHDC
RUEAHLC/HQ ICE IAO WASHINGTON DC
INFO RUEHC/SECSTATE WASHDC 3687

UNCLAS NEW DELHI 001121 
 
SIPDIS 
 
SIPDIS 
 
USDOC FOR 532/HPC/L. HINES/K. GAINES/JAY HATFIELD 
USDOC FOR 3131/USFCS/OIO/ANESA/KREISSL 
USDOC FOR 4530/MAC/ANESA/OSA 
ICE HQ FOR STRATEGIC INVESTIGATIONS 
STATE FOR EB/ESP 
 
E.O. 12958: N/A 
TAGS: ETTC ETRD BEXP IN
SUBJECT: EXTRANCHECK: POST-SHIPMENT VERIFICATION: MAHANAGAR 
TELEPHONE NIGAM LIMITED, NEW DELHI, LICENSE NO. D361269 
 
REF: USDOC 07096 
 
¶1. Unauthorized disclosure of the information provided below is 
prohibited by Section 12(c) of the Export Administration Act. 
 
¶2. Acting Export Control Officer (ECO) Perry Davis and BIS FSN Prem 
Narayan conducted a Post-shipment Verification (PSV) at Mahanagar 
Telephone Nigam Ltd. (MTNL), New Delhi, on March 6, 2007. 
 
¶3. BIS requested a PSV at MTNL, a GOI enterprise under the Ministry 
of Communications and Information Technology (MCIT), Website: 
www.mtnl.net.in.  MTNL was listed as the Ultimate Consignee and 
Agilent Technologies India Pvt. Ltd. (Agilent), Bangalore, as the 
Intermediate Consignee for one (1) 5071A Primary Frequency Standard 
(PFS) controlled under ECCN 3A002.  The license applicant was 
Symmetricon Inc., (Symmetricon), San Jose, CA. 
 
¶4. ECO along with FSN Narayan met with Naresh Kumar Jindal (Jindal), 
Divisional Engineer-OCB TAX Karol Bagh, MTNL.  Prashant Agrawal 
(Agrawal), Under Secretary (AMS), facilitated the meeting.  Agrawal 
was also present at the meeting. 
 
¶5. MTNL officials had not previously been aware of the BIS export 
regulations.  Jindal did not recall a previous end-use check (EUC) 
visit of USG or BIS official to MTNL Karol Bagh exchange.  Jindal 
was not aware of the BIS export license conditions or whether 
Symmetricon provided the conditions to MTNL or not. ECO informed 
Jindal that it is mandatory for U.S. exporter to provide the export 
license conditions in writing to the end-user and they should always 
have it in their files.  ECO explained the conditions listed in 
reftel. 
 
¶6. Jindal stated that in 2001 MTNL floated a global tender to 
purchase four PFS.  Of the four PFS, three are operational and one 
is kept as stand-by.  The tender was awarded to a local company 
Himachal Futuristic Communications Ltd. (HFCL).  HFCL sourced all 
four PFS from Agilent and installed them at the MTNL Karol Bagh 
Exchange.  One of the four PFS became faulty in 2005.  In December 
2005, it was sent for repairs through HFCL to Agilent in Bangalore. 
In turn Agilent sent it to Symmetricon for repairs.  The MTNL Karol 
Bagh Exchange received it back in October 2006, under export license 
D361269. 
 
¶7. Jindal was forthcoming and cooperative and provided a copy of the 
MTNL Purchase Order in favor of HFCL for supplying four PFS, MTNL 
letter informing HFCL of the need to repair the PFS, Agilent 
Delivery Note, dated October 11, 2006, reflecting delivery of PFS at 
MTNL Karol Bagh Exchange, Symmetricom Export License Application 
Information Form, completed by MTNL and acknowledging to abide by 
the BIS export license conditions, and MTNL End Use Certificate 
including Form BXA-711. 
 
¶8. Jindal stated the end-use of the PFS is synchronizing all telecom 
networking equipment.  It is a master clock and the entire MTNL 
network is synchronized to this clock.  It generates the accurate 
reference signal for distribution to the network.  He stated that 
the life of a PFS is approximately seven years.  After the meeting, 
ECO Davis and FSN Narayan were taken to the area where all four PFS 
were functioning. ECO was able to verify the serial number. 
However, the serial number forwarded to Post for this check, 
US3930176, seemed to be missing a digit.  The actual serial number 
recorded off the PFS was US39301755, US39301757, and US39301758. 
The MTNL Karol Bagh Exchange is guarded 24 hours a day. 
 
¶9. Established in 1986, MTNL is a public sector undertaking (PSU) 
under the administrative control of the GOI's Department of 
Telecommunication, MCIT.  The GOI holds an equity of 52 percent and 
rest is the Indian public.  Before 1986 it was 100 percent owned by 
GOI.  MTNL was created to upgrade the quality of telecom services, 
expand the telecom network, introduce new services and to raise 
revenue for telecom development needs of India.  In 2001 it was 
divided in two companies.  MTNL became responsible for providing 
telecom services in Delhi and Mumbai and Bharat Sanchar Nigam 
Limited (BSNL) to rest of India.  The telecom services provided by 
MTNL include fixed line telephones, cellular phones and internet. 
MTNL's clients for fixed line are approximately 1.6 million and for 
cellular phones approximately 1 million.  MTNL employs approximately 
55,000 employees. 
 
¶10. Recommendation: Post recommends Mahanagar Telephone Nigam Ltd. 
as a reliable recipient of the controlled U.S.-origin commodity. 
All indications are that the listed commodity is being used in 
accordance with U.S. Export Administration Regulations. 
(PDAVIS/PNARAYAN) Pyatt