BSNL floats Rs 65,000-crore phase-3 tender for BharatNet

The BharatNet phase-III project involves a three-tier structure architecture, including internet leased line bandwidth, which is to be provided by BSNL at 7,269 blocks

State-run telco BSNL has floated a tender worth around Rs 65,000 crore to implement the third phase of the BharatNet project. It is expected to complete the process of offering the tender by April.

The tender is part of the Rs 1.39-lakh crore revamped BharatNet project, cleared by the cabinet in August 2023. The tender aims to connect and upgrade existing 164,000-gram panchayats and connect around 47,000-gram panchayats under the new model.

The telco has invited bids across 16 states and UTs for the design, supply, construction, and installation of optical fibre cables, switches, routers and other telecom equipment under the tender.

Industry experts said the tender will allow multinational and domestic telecom equipment makers to generate additional revenues. They added that multinational companies like Nokia and Ericsson could participate. In contrast, among domestic players, HFCL, STL, TCS, Tejas Networks, Inventum, Infinity Labs, and Lekha Wireless could participate in the tender process.

Experts added that telecom equipment companies may submit bids in individual capacity and consortium.

Domestic players like Tata Consultancy Services (TCS), Tejas Networks and other smaller domestic companies demanded equitable treatment with foreign counterparts. They had urged the Department of Telecommunications (DoT) to remove the eligibility condition that companies should have supplied a minimum quantity of equipment earlier.

Domestic players, through their consortium Voice of Indian Communication Technology Enterprises (VoICE), said that such a condition would make them more prominent players.

The BharatNet phase-III project involves a three-tier structure architecture, including internet leased line bandwidth, which is to be provided by BSNL at 7,269 blocks. The middle-mile connectivity, which blocks the gram panchayat connectivity, will involve private players to operate and maintain the project for 10 years, and the last-mile connectivity, which is village-to-household, will be provided through the 'Udyami' model.

Udyamis are village-level entrepreneurs who will help the government to take the fibre connections to the homes on a 50:50 revenue-sharing basis.
The state-run telco aims to provide 15 million home fiber connections over five years using the BharatNet Udyami model.

Under the project, the government will give these Udyamis a one-time financial incentive between Rs 8,900 and Rs 12,900 per fiber-to-home (FTTH) connection.

As per the tender document, bidders can be a single entity or a group of entities coming together to implement the project. The minimum net worth required for those submitting the bid for only one package is Rs 50-Rs 375 crore, depending on the state it is bidding for. Similarly, the minimum average annual turnover of the last three financial years should be at least Rs 325 crore for only one package.

Regarding the technical capability, the bidder should have executed optical fibre cable (OFC) network construction projects and supplied at least 800 equipment units, such as routers, switches, etc, in the last 10 years if bidding for one package under category two states, the document said.

“The sole bidder or members of the consortium should meet the technical capability requirements either on their own or jointly,” the document said.