TCS, BSNL in final stage of closing Rs 16,000 crore 4G launch deal

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

Citing people with knowledge of the development, the report said that the two companies have bridged their differences over pricing and other commercial terms.

The deal paves the way for the Tata group–led consortium to emerge as India’s first indigenous telecom network solutions provider.

Tejas Networks, a unit of Tata Sons, is expected to locally manufacture the network equipment for BSNL.

BSNL’s 4G services are expected to be rolled out across 100,000 towers or sites, the report added.

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).

"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," the telecom ministry said.

The state-run telco serves some 111 million wireless subscribers.