TCS secures BSNL 4G deal

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Tata Consultancy Services (TCS), India’s leading IT services company, has secured a significant advance purchase order (APO) valued at over Rs 15,000 crore from Bharat Sanchar Nigam Limited (BSNL), a public sector telecom operator. In an official announcement to the Stock Exchange Board of India (SEBI), TCS revealed that the APO was for the deployment of a nationwide 4G network in collaboration with a consortium comprising TCS, the Centre for Development of Telematics (C-DoT), and Tejas Networks. The deal, worth approximately $1.8 billion, marks one of the largest contracts signed by TCS in recent quarters. TCS’s previous largest deal in the January-March quarter amounted to around $750 million.

This new agreement signifies a significant expansion of TCS’s role, as it will now be providing equipment in addition to its existing software management services. By including Tejas Networks as the equipment provider, TCS aims to position itself as a formidable competitor against global equipment vendors, while still retaining its role as the systems integrator. BSNL has been actively exploring the launch of 4G services since 2019. However, the company faced challenges in 2020 when it had to cancel a tender due to restrictive conditions favoring domestic companies. Subsequently, the government directed BSNL to prioritize the utilization of equipment from domestic vendors exclusively. In line with this directive, BSNL had previously collaborated with TCS, Tejas Networks, and C-DoT to conduct a Rs 200 crore proof-of-concept (POC) to test its indigenous 4G technology. With the latest APO, BSNL aims to accelerate its 4G network deployment across the country.

This partnership with TCS-led consortium provides BSNL with the necessary expertise and equipment to enhance its telecommunications infrastructure and deliver reliable high-speed connectivity to its customers nationwide. As the Indian government continues to push for the expansion of digital services, this collaboration between TCS and BSNL is a significant step towards realizing the vision of a digitally connected India. In summary, TCS’s receipt of a substantial advance purchase order from BSNL for the deployment of a nationwide 4G network underscores the company’s expanded role in providing equipment alongside its software management services. This collaboration is expected to bolster BSNL’s efforts to launch reliable 4G services across India and contribute to the government’s vision of a digitally connected nation.

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