In a significant development, Tata Consultancy Services (TCS), India’s largest IT firm, has secured a contract worth Rs 15,000 crore from Bharat Sanchar Nigam Limited (BSNL) to deploy a 4G network across India. Tejas Networks, a subsidiary of the Tata Group, is a part of the consortium and will be responsible for supplying and servicing the radio access network (RAN) equipment.
Deal Brings an End to Speculation
The announcement brings an end to months of speculation surrounding the deal, with the TCS-led consortium emerging as the front runner for the contract. This deal has been in progress for several months, and TCS, as the country’s largest software exporter, stands to benefit significantly. Tejas Networks’ involvement further strengthens the consortium’s capabilities.
TCS’s Dominance in the IT Sector
TCS is a powerhouse in the IT industry and typically generates more than 5% of its revenue from domestic projects. This contract with BSNL marks TCS’s third major deal in 2023, following previous agreements with UK-based Phoenix Group and British retailer Marks and Spencer. While the exact deal size remains undisclosed, reports suggest that the Marks and Spencer deal alone was valued at $1 billion.
Overview of BSNL and 4G Services
Bharat Sanchar Nigam Limited (BSNL) is a state-run telecom company that provides fixed-line, wireless telephony, and data services across India, excluding Mumbai and New Delhi. Private competitors have already introduced 4G services and even launched 5G offerings in specific areas. BSNL’s collaboration with TCS and Tejas Networks aims to bring 4G services to a vast number of users by deploying the latest technology across 100,000 towers or sites.
As a part of this consortium, TCS has partnered with the Centre for Development of Telematics (C-DOT) to develop an indigenously-built 4G core, marking a significant milestone for BSNL.
Impact on TCS’s Stock Market Performance
Following the announcement, TCS’s stock market performance has been positive. As of 1:15 PM, TCS shares were trading at Rs 3,262.90 apiece, representing a 1.28% increase on the BSE.
Overall, the TCS-led consortium’s victory in securing the Rs 15,000-crore BSNL contract reinforces its position as a key player in India’s telecom industry and highlights TCS’s ability to deliver large-scale technology implementations.
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