BSNL, the state-owned telecom company in India, has made a significant move towards upgrading its network infrastructure and providing advanced services by awarding ₹15,700 crore worth of advance purchase orders for 1 lakh BSNL 4G sites to Tata Consultancy Services (TCS) and ITI Ltd. This announcement concludes months of speculation, with TCS emerging as the favoured candidate for the contract. The collaboration between BSNL, TCS, and ITI is a major milestone in BSNL’s efforts to modernize its infrastructure and expand its network coverage throughout the country.
ITI Ltd, a government-owned telecommunications equipment manufacturer, will play a crucial role in the deployment of the next-generation network by deploying 20% of the 4G sites. This emphasizes the government’s commitment to supporting domestic players in the telecom sector and strengthens the indigenous telecom manufacturing capabilities of India.
BSNL plans to issue purchase orders on a circle-wise basis to procure the necessary equipment for the 4G network expansion. The advance purchase orders were officially issued on May 19, signalling the start of the project. This organized approach ensures an efficient implementation process for BSNL’s ambitious network modernization plans.
The collaboration with TCS and ITI is aimed at closing the gap between BSNL and its private sector rivals, who have already established 4G services and even introduced 5G in certain areas. By partnering with TCS and ITI, BSNL is demonstrating its commitment to catching up with the rapidly evolving telecom landscape and providing advanced services to its customers.
TCS, India’s largest software exporter, will lead the consortium responsible for implementing the BSNL 4G project. The consortium also includes Tejas Networks, a telecom gear manufacturing company within the Tata Group. Tejas Networks will supply and service the Radio Access Networks (RAN) equipment, contributing to the growth of the domestic telecom manufacturing ecosystem.
For TCS, this deal comes at a critical time as its major markets in the United States and Europe are experiencing a slowdown. Leading the BSNL 4G project consortium offers TCS the opportunity for significant revenue growth. However, the involvement of multiple players in the project may have a potential impact on TCS’s profit margins, as the responsibilities and revenues are shared among the consortium members.
Overall, the awarding of advance purchase orders for the deployment of 1 lakh BSNL 4G sites to TCS and ITI marks a major milestone in BSNL’s efforts to upgrade its network infrastructure and provide advanced services. This collaboration signifies BSNL’s commitment to catching up with its private sector competitors and offering enhanced connectivity to customers across India.
