BSNL and TCS are not on the same page with 4G deployment cost

Bharat Sanchar Nigam Limited (BSNL) and its 4G technology partner, TCS (Tata Consultancy Services) would not be on the same page when it comes to the cost of deploying the network. TCS is unhappy with the cost at which BSNL wants to get things done. According to a report by ET Telecom, BSNL had issued a purchase order for the purchase of 4G equipment for over 6,000 sites on March 31 for Rs 360 crore. This cost is 56% lower than what the public telecommunications company had offered Nokia in 2018 for the Phase VIII expansion.

BSNL has not yet accepted the price offered by TCS and a high-level meeting on this subject is scheduled very soon. Regardless of the pricing issue, BSNL is on track to launch a limited 4G launch on August 15, 2022.

The cost of TCS has increased, BSNL must take a call

BSNL shouldn’t be stuck with cost issues right now. There have already been enough delays. The cost to TCS of manufacturing and setting up equipment has increased along with rising component prices, rising labor wages, etc. Thus, it would not make sense for TCS to work with BSNL for such low prices.

Additionally, the ripple effect of what BSNL is currently doing would manifest itself in motivating other local businesses working on local products. It would even seriously demotivate TCS from working with BSNL in the long run.

BSNL’s conservative approach must change here and the telecom operator must understand that they cannot afford more delays. Saankhya Labs and Lekha Wireless would also supply BSNL with low-power radios to deploy 4G networks in rural areas of the country.

BSNL can definitely make a difference for itself and for the telecommunications industry. But for that to happen, things have to move fast, and the public telephone company has to make a decision about it quickly.

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