TCS and BSNL to seal $2Bn deal for BSNL 4G

Tata Consultancy Services (TCS) and Bharat Sanchar Nigam Ltd (BSNL) are in the final stages of closing an estimated $2-billion deal to launch the state-run telco’s 4G network. BSNL’s 4G services are expected to be rolled out across 100,000 towers or sites.

Tejas Networks, a unit of Tata Sons, which is the parent company of TCS, is expected to locally manufacture the network equipment for BSNL. With this deal, the Tata group–led consortium will emerge as India’s first homegrown telecom network solutions provider.

In late July, the Union Cabinet approved a Rs 1.64 lakh crore revival package for BSNL, which includes cash support of Rs 43,964 crore and non-cash support of Rs 1.20 lakh crore. The package has three main elements - improving the quality of BSNL services, de-stressing the balance sheet, and expanding the fibre reach through merger with Bharat Broadband Network Limited (BBNL).

The telecom ministry said, “To improve existing services and provide 4G services, BSNL will be allotted spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 crore through equity infusion. With this spectrum, BSNL will be able to compete in the market and provide high speed data using their vast network including in rural areas.”