Both Telecommunications Consultants India (TCIL) and Indian Telephone Industries (ITIL), and Tata Consultancy Services (TCS) and Tech Mahindra, the private sector systems integrators, are interested in bidding on BSNL’s long-awaited supply of 4G equipment. . ‘advanced discussions’ with multiple national stakeholders, including gear manufacturers and innovative startups as consortium partners to build indigenous next-generation telecommunications infrastructure.
“We are seeing this (BSNL rollout) as a potential opportunity, and we will duly present our proposals when the telco submits a tender document, and we are already in discussions with some local equipment manufacturers to address them for supply, deployment and maintenance. of BSNL’s 4G network, “Rajiv Gupta, president of TCIL, told ETTelecom.
Domestic providers, however, remain concerned, as they say a shift to a system integrator-driven model has never been previously tested in any of the known telecom implementation initiatives, and fear that these IT service giants, with the ambition of acquiring costs The “effective” team may hit Chinese suppliers and redirect their supplies from other East Asian countries in defiance of the country’s Atmanirbharta (self-reliance) encouraged by Prime Minister Narendra Modi.
To expand its existing network to provide 4G-based services, the state telco is looking to roll out up to 7,000 new 5G-ready sites on TDD while aiming to upgrade 49,300 2G and 3G sites on the FDD platform. BSNL had to scrap the request for proposal (RFP), which floated on March 23 under the phase IX expansion program after strong opposition from local telecoms firms and providers due to allegedly restrictive terms.
Are multinationals losing?
The radio access network or RAN supplied to BSNL in phase VII supports 2G and 3G only with no 4G provision, but ZTE said it could upgrade those nodes to 4G. While Phase VIII supports all three generations of technologies, a software plug-in would be required to make it 4G ready. But, nevertheless, it would not prepare the network for 5G. The telco believed that a proprietary migration would be a way forward, but favored inviting bids from multiple equipment manufacturers to discourage reliance on a single vendor. Experts warn that on the basis of proper migration, existing partner vendors like Nokia and ZTE may have the freedom to price high and the network’s progression to a 5G technology that is just around the corner must be seen. holistically.
While the BSNL may seek offerings for 22,500 sites separately, a systems integrator-led strategy would eventually discourage multinational vendors unless they are in line with the recent policy framework calling for local value addition.
Nokia, on the other hand, is struggling to recoup about Rs 1,000 crore from the financially troubled telco, while Sweden’s Ericsson historically traded a ‘very high price’ and was unsuccessful in previous offerings, and has yet to recover its BSNL quotas in the amount of Rs 100 million for the supply of equipment under the phase V GSM expansion program.
Queries to Nokia and ZTE were not answered.
Given the anti-China stance due to the current Ladakh standoff and the rhetoric from local suppliers against equipment dumping, multinational giants Huawei and ZTE may no longer be in a scuffle to supply equipment to a state telecom operator.
Pushing foreign providers to backtrack, publicly owned ITI is already preparing to manufacture eNodeB 4G and 5G and related network elements, citing it as part of its efforts to consolidate the various components for the telecommunications sector of the country depends on local businesses to achieve self-sufficiency. ITI recently hired a consultant and partnered with Tech Mahindra and TCS, and is already planning to conduct a proof of concept (PoC) on BSNL’s 2100 MHz spectrum band.
Vocal for local
Following India’s self-sufficiency in the context of the revised India Manufacturing Preference (PMI) policy, domestic companies that were exporting their majority of equipment to overseas markets, may see traction at home through the BSNL core and wireless access networks with a slant towards homegrown ecosystem.
Now, as local suppliers are anxiously looking at the revised terms and conditions in BSNL’s public tender document, various equipment companies are competing to become an integral part of consortia aimed at offering end-to-end products and services, including installation. and maintenance of BSNL’s commercial 4G network.
Indian companies poised to conquer BSNL’s access and core networks mainly include Tejas Networks, Himachal Futuristic Communications, Vihaan Networks, Lekha Wireless, Sterlite Technologies and Signalchip, which are also in talks with private and supported system integrators. the state.
ITI said that it has signed a Memorandum of Understanding (MoU) with startups such as Resonous, Nivetti Systems, and Sooktha and is also in talks with other Indian companies to meet BSNL’s end-to-end 4G needs and future 5G requirements through of these consortia. .
Based on extensive 5-year research and development (R&D), Bengaluru-based Lekha Wireless offers an LTE radio access network and has already partnered with Mumbai-based TCS.
“Domestic companies must be given a chance on BSNL’s 4G network. Indigenous Design Developed and Manufactured Products (IDDM) should take precedence, otherwise the core will end up being coded and controlled by foreign entities, even if the equipment is technically manufactured in India, “he added. The co-chair of the Telecommunications Equipment and Services Export Promotion Council (Tepc), Sandeep Agarwal, said.
The Delhi-based group representing Indian telecom companies said local equipment manufacturers and suppliers are also in talks with the Center for Telematics Development (C-DoT), a state R&D wing of telecommunications.
Both Vihaan Networks, led by Rajiv Mehrotra, and Tejas Networks, powered by Sanjay Nayak, have been offering teams in security-prone government-funded network initiatives such as Left Extremism (LWE) areas and the fiber backbone. national BharatNet. The two companies, according to the sources, are preparing their efforts to expand capacities, as they are interested in supplying equipment to the state telco directly or indirectly through an integrator.
Local companies have also been demanding a level playing field, saying that private telecom service providers such as Reliance Jio, Bharti Airtel and Vodafone Idea should also be mandated to acquire locally made equipment at least to some extent initially.
DoT, BSNL showdown
The difference of opinion between the fourth largest telecommunications company and its administrative department has come to light, after the latter’s technical committee headed by Department of Telecommunications (DoT) member (Technology) K Ramchand recommended a series of measures to republish tender notices for network expansion and acquisition of equipment for 4G commercial services.
The department blamed the telecom operator for delaying the 4G launch after BSNL said it would redesign the bidding document with revised terms and conditions and send it back to the department for investigation, assuming its independence is threatened.
BSNL has yet to receive a direction from the department after it raised reservations to views suggesting that domestic companies implement the core network and discourage investment in 2G technology, and defended the 4G-only radio network in the future.
In its letter dated October 8, the losing telecom company, which has struggled to keep up with private operators and lost its revenue and subscribers to Reliance Jio, owned by billionaire Mukesh Ambani, and Bharti Airtel, powered by Sunil Mittal, has opposed the suggestions. saying that about 70% of its revenue comes from 2G alone and that the use of local providers, whose products have not been tested, would affect the quality of services.
The service provider, meanwhile, has also sought compensation from the government for the loss stemming from the lack of gradation of 36,000 radios from China’s ZTE, which it said would generate an additional burden of Rs 1,250 crore in capital expenditures. and the deterioration of 2G Service due to the non-acquisition of 2G equipment.
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