TCS-CDoT consortium skips BSNL’s 5G tender for Delhi-NCR; Tejas among bidders

BSNL

A consortium led by Tata Consultancy Services (TCS) and the Centre for Development of Telematics (C-DoT), which is deploying 4G services for BSNL, has decided not to participate in the state-run telecom company's tender for 5G services in the Delhi-NCR region.

Tejas Networks, the consortium’s 4G RAN supplier, however, has submitted a bid along with Galore Network and Lekha Wireless for BSNL’s commercial deployment of 5G technology, sources told Moneycontrol.

As part of the consortium, TCS, India's biggest IT services company, acts as the system integrator, while Tejas supplies 4G and 5G network equipment and C-DoT network core solutions.

Tejas supplies 4G equipment to BSNL as part of a Rs 19,000-crore contract won by parent TCS-led consortium in 2023.

Last year, BSNL conducted a pilot programme in Delhi for 5G services based on a Networks as a Service (NaaS) model. Lekha Wireless, VVDN Technologies, Coral, Niral Networks, Galore Networks and WiSig participated in live trials of 5G technology using the 700MHz spectrum.

According to the tender document, BSNL plans to deploy 5G services across 1,876 sites using indigenous standalone (SA) architecture. The deployment will operate on a revenue-sharing model for at least seven years, where the selected bidder will shoulder both capital expenditure (capex) and operating expenses (opex). BSNL has mandated a minimum 70 percent share of the revenue generated after the rollout.

Tejas Networks and Galore possess both 5G core and RAN technologies, while Lekha Wireless specialises in RAN hardware technology.

A Radio Access Network, or RAN, connects devices such as smartphones to the internet using radio waves.

Experts say while potentially leading to short-term losses for the selected companies, the revenue-sharing model can position them as significant players in the global telecom market, which five major vendors dominate.

Europe’s Ericsson and Nokia, along with China’s Huawei and ZTE, are the top four telecom gear providers globally, with Korea’s Samsung as a smaller but key player in some markets.

“These companies have developed their technology stack domestically and, upon selection by BSNL, will transition into global service providers. This is a unique approach since the telco's revenue-sharing model has not been implemented in any other market,” Rakesh Bhatnagar, Director General of the VoICE consortium, representing domestic telecom solution providers, told Moneycontrol.

The BSNL 5G rollout initially aims to serve 100,000 registered subscribers using the 900 MHz and 3300 MHz bands, along with the simultaneous launch of fixed wireless access (FWA) broadband services, as outlined in the tender document.

Commercial roll-out of 5G services under a network-as-a-service (NaaS) model is anticipated by the middle of the year.

Nokia, Ericsson and other global vendors previously requested that BSNL modify its tender norms to enable their participation. However, BSNL maintained that only domestic players could bid, which was consistent with its earlier 4G tender policy.

“This development could pave the way for these companies to establish themselves as export players in emerging markets. There are five global suppliers of 5G gear but this number could soon increase to eight with the inclusion of these three domestic vendors,” Bhatnagar added.

The TCS-led consortium, which includes the state-owned Centre for Development of Telematics (C-DoT), is deploying one lakh sites for BSNL’s commercial 4G network.

As many as 65,000 4G sites have gone live in the country and the telco is working towards increasing coverage and capacity based on 2,100 Mhz and 700 MHz spectrum bands.

Tejas Networks' COO Arnob Roy, in the company’s Q3 earnings call last week, said the company delivered radios for 27,000 sites for BSNL's 4G networks during the quarter, taking the total number of deployed sites to more than 86,000.