TCS gets Rs 15,000-crore BSNL deal to deploy 4G network in India

BusinessTCS gets Rs 15,000-crore BSNL deal to deploy 4G network in India


Tata Consultancy Services – TCS has got a deal of Rs. 15,000 crores, which is around $1.8 billion from government-owned telecom company Bharat Sanchar Nigam Limited – BSNL. The idea is to deploy a 4G network all over India. It will be a huge boost for BSNL, which has been trying hard to compete with major private companies in the telecom industry.

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The company announced on 22 May in regulatory filings on BSE that TCS’s telecom gear-making company Tejas Networks will be liable for supplying and servicing the Radio Access Networks – RAN equipment. As per experts, 20% of the deal value will go to state-run ITI for this project.

The 4G network will assist BSNL to get quicker and more trustworthy services to its users. It will also help in getting new customers and increasing its market share. The deal will also make new employment opportunities in the telecom industry. TCS plans to recruit people in huge numbers to deploy the 4G network, which will be a good boost to the Indian company.

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This will be the third major deal in 2023 in the IT industry after a $723 million deal from UK-based Phoenix Group and the second one is British retailer Marks and Spencer (M&S). Although the real deal size was not revealed, as per the reports, the M&S deal was worth $1 billion.

This deal was in discussions to revive BSNL since last year September. In July 2022, the government allowed for an Rs. 1.64 lakh crore revival package for BSNL, which also includes cash support of Rs 43,964 crore and non-cash support worth Rs. 1.20 lakh crore.

The intention is to enhance the quality of BSNL services, manage the balance sheet, increasing the fiber reach through a merger with Bharat Broadband Network Limited – BBNL. The TCS-ITI deal is possibly a part of the same package as well. It is reported that BSNL’s 4G services are likely to be launched all over 1 lakh towers or sites.

The deal is a positive sign in the telecom industry of India. It will also assist in boosting the economy. 

Bharat Sanchar Nigam Ltd. was started on 15th September 2000. Of late, the telecom company has been challenged to compete with private players in recent years. It is also due to a lot of factors such as the company’s high debt burden and outdated network.

The 4G network will assist BSNL to have more customers as they will have better choices and lesser prices. The deal will also have an important landmark in the company’s current network. 

The reason why BSNL has been failing to provide its customers with good value is its outdated working policies and inability to cover the network areas. Also, private players have come up with good packages that offer internet, telephone, and broadband facilities in a better manner. This new deal will likely help it to not close down its operations and instead bounce back to make it a profitable venture.

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