An advanced purchase order for more than Rs 15,000 has been granted by the government-owned company Bharat Sanchar Nigam Ltd. (BSNL) to a group led by Tata Consultancy Services (TCS) for the installation of 4G network infrastructure throughout the nation.
Also given advanced purchase orders for this project are Tejas Networks Ltd. and ITI. The TCS-led consortium includes Tejas Networks. In accordance with the terms of the agreement, Tejas Networks will provide BSNL with the Radio Access Network (RAN) hardware and maintenance.
In the previous month, BSNL had given TCS a contract worth Rs 550 crore for the establishment of 6,000 4G sites around India. According to telecom minister Ashwini Vaishnaw, it expects to construct roughly 1.12 lakh sites across the nation to roll out its 4G services.
According to reports, the purchase order for TCS is for 100,000 tower sites. As of right now, BSNL has already set up more than 200 sites in several areas of Punjab, including Amritsar and Pathankot, using local technology. By the end of June, BSNL hopes to debut its 4G services, and it will probably focus on cities or geographic areas with large potential markets for sales. Due to a number of problems, the company’s 4G debut was nearly three years behind schedule.
Kerala, Maharashtra, Tamil Nadu, Karnataka, and Punjab are among the states with high revenue-earning circles, according to BSNL. It is estimated that the total project will cost Rs 24,500 crore.
A package worth Rs 1.64 lakh crore, spread over four years, was agreed by the Union Cabinet in July of last year for the rehabilitation of BSNL. This package is scheduled to be distributed in its entirety in the first two years at 70%.
The total debt owed by BSNL is currently 33,000 crore rupees. In order to lower its high cost of debt, the corporation will issue bonds with sovereign guarantees. Since Jio, Bharti Airtel, and Vodafone Idea, private competitors, brought out 4G services significantly sooner and lowered data pricing, BSNL has had difficulty gaining users. In the majority of the country, Jio and Bharti Airtel have already begun offering 5G services.
The government then instructed the telecom operator to only use equipment made in the country. To test in-house 4G technology as part of a Rs 200 crore POC, BSNL has previously collaborated with TCS, Tejas Networks, and C-DoT (Centre for Development of Telematics).
The price of TCS shares is up 0.65 percent to Rs 3,243.7, while Tejas Networks shares are up 2.2 percent to Rs 656.70.
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