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TCS, BSNL to Close Rs 16,000 Crore 4G Launch Deal

IT giant TCS and Government-owned BSNL are in the final closing stage of 4G deal.

On September 30, IT giant Tata Consultancy Services (TCS) and Government-owned Telco Bharat Sanchar Nigam Ltd (BSNL) are in the final closing stage, estimated Rs 16,000 crore, i.e. $2 billion 4G network launch deal, The Economic Times reported.


Citing people with developmental knowledge, the report said the two companies had connected their differences in pricing and other commercial terms. The deal paves the way for the Tata group-led conglomerate to emerge as India’s first native telecom network solutions provider. Tejas Networks, a unit of Tata Sons, is predictable to manufacture the network equipment for BSNL locally.


BSNL’s 4G services are expected to be bowled out across one lakh towers or sites, the report added. In July, the Union Cabinet permitted a Rs 1.64 lakh crore renewal package for BSNL, which comprises cash support of Rs 43,964 crore and non-cash support of Rs 1.20 lakh crore. The package has three main elements refining the quality of BSNL services, de-stressing the balance sheet, and intensifying the fibre reach by merging with Bharat Broadband Network Limited (BBNL).


“To recover existing facilities and deliver 4G services, BSNL will be allotted spectrum in 900/1800 MHz band administratively at the cost of Rs 44,993 crore over equity infusion. With this spectrum, BSNL will be able to contend in the market and provide high-speed data using their vast network counting in rural areas,” the telecom ministry said. The state-run telco assists some 111 million wireless subscribers.

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