TCS to pocket about 80% of Rs 15,000 crore BSNL order

The remaining amount will go to Tejas Networks for radio access network equipment and Centre for Development of Telematics (CDoT) which are part of the TCS-led consortium, apart from ITI Limited which will deploy a fifth of the order.

While the advanced purchase order for the initial 100,000 sites has been rolled out, the purchase orders for remaining sites will be issued on the TCS-­led 4G consortium meeting key milestones and for circle-specific requirements, sources in the know told ET.

Also read | BSNL deal will propel TCS’ global telecom offerings: TCS COO

“TCS will get around 70­-80% of the deal value while passing on the rest to other members of the consortium,” said the source. “The nature of such deals involves multiple milestones and stages of completion, and remaining purchase orders will be issued accordingly,” said the person.

TCS informed the exchanges on Monday that it has received advance purchase orders (APOs) worth Rs 15,000 crore out of the around Rs 25,000 crore deal.

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At about $1.8 billion worth of APO, this deal also marks one of the largest deals closed by TCS in recent quarters. The largest deal closed by the company was in the last quarter and was worth around $720 million. It al­so signed a large deal, estimated at around $1 billion with long-time partner M&S.The TCS-­led consortium includes Centre for Development of Telematics (C­DoT) and Tejas Networks. TCS parent Tata Sons has a majority stake in Bengaluru Based Tejas Networks. ET was the first to report this development on Monday.

“The consortium led by Tata Consultancy Services Limited has received an Advance Purchase Order valued over Rs 15,000 crore from BSNL, a 100% Govt. of India owned Public Sector Undertaking, for the deployment of a 4G network across India,” TCS wrote in a note to exchanges. Tejas Networks also informed the exchanges about the transaction.

While TCS was selected to offer the 4G solutions late last year, the deal signing took much longer due to procedural and regulatory delays, which included clearance form the BSNL board as well as a Group of Ministers that was closed in the first week of May.

This deal will potentially pitch the Tata Group consortium as an indigenous telecom network solutions provider against global players like Ericsson, Nokia, Huawei among others. It will also allow TCS and Tejas Networks to take their 5G rollout offerings to global telecom operators.