State-owned Telecommunications Consultants India Limited (TCIL) has barred Cisco Systems from participating in its future tenders for a period of two years, alleging unfair, exclusionary, and anti-competitive conduct linked to the Karnataka State Wide Area Network (KSWAN) 3.0 project. Cisco, however, said it is in discussions with the public sector undertaking and remains committed to compliance with Indian laws.
In a letter dated January 14, 2026, addressed to Trideeb Roy, Managing Director (Public Sector), Cisco India & SAARC, TCIL said Cisco’s actions undermined fair competition and effectively sabotaged TCIL’s bid for the strategically significant KSWAN 3.0 programme. The ban applies to all future tenders, bids, and procurement processes floated by TCIL for the next two years, though existing contracts and ongoing projects will remain unaffected.
The dispute stems from a tender issued by the Karnataka Centre for e-Governance to appoint a system integrator for KSWAN 3.0, a project aimed at providing statewide network connectivity to Karnataka government offices along with five years of operations and maintenance services. The deadline for bid submission was January 14, 2026.
According to TCIL, it approached Cisco Systems India as early as December 18, 2025, seeking standard vendor support required in government procurement processes. This included technical compliance documents, product datasheets, solution inputs, and the mandatory Manufacturer Authorisation Form (MAF). TCIL alleged that despite repeated reminders and awareness of the bid deadline, Cisco failed to provide the required pre-bid documents within stipulated timelines.
TCIL further claimed that at the final stage of bid submission, Cisco attempted to impose “extraneous conditions,” which the PSU described as a breach of earlier assurances and detrimental to fair and open competition. The company argued that such conditions had never been imposed by Cisco in previous engagements, including projects for the Indian Coast Guard, the Indian Air Force’s AFNET, and Punjab & Sind Bank. This, TCIL alleged, indicated an intentional attempt to derail its participation in the KSWAN 3.0 tender.
The PSU also cited a meeting held at its office on January 12, 2026, where Cisco executives reportedly committed to providing the pending bid-related documents by the end of the day. TCIL said the commitment was not honoured. Subsequently, on January 13, 2026, TCIL issued a show-cause notice to Cisco, warning that what it termed an “extortionist approach” could lead to blacklisting due to its adverse impact on public procurement and competitive neutrality.
Responding to the development, a Cisco spokesperson said that, the company abides by all applicable domestic laws and regulations in the markets where it operates. “As we continue to engage with Telecommunications Consultants India Limited on this matter, we remain focused on delivering industry-leading products and services to customers across India,” the spokesperson said.
From a broader perspective, the episode highlights growing friction between global technology vendors and Indian public sector entities amid heightened scrutiny of procurement practices, competition norms, and strategic digital infrastructure projects. With large government-led network programmes like KSWAN 3.0 carrying both economic and strategic significance, timely vendor support and strict adherence to procurement processes have become critical. The TCIL–Cisco standoff underscores how delays, conditional support, or perceived leverage by large vendors can escalate into regulatory and reputational risks in India’s increasingly assertive public procurement environment.
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