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

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Tata Consultancy Services would be the predominant beneficiary of the Bharat Sanchar Nigam (BSNL) 4G deal incomes between 70-80% share of the deal worth which is estimated to be a whopping $2.9 billion, sources within the know of the event advised ET.

The remaining quantity will go to Tejas Networks for radio entry community gear and Centre for Development of Telematics (CDoT) that are half of the TCS-led consortium, aside from ITI Limited which can deploy a fifth of the order.

While the superior buy order for the preliminary 100,000 websites has been rolled out, the acquisition orders for remaining websites might be issued on the TCS-­led 4G consortium assembly key milestones and for circle-specific necessities, sources within the know advised ET.

Also learn | 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,” mentioned the supply. “The nature of such deals involves multiple milestones and stages of completion, and remaining purchase orders will be issued accordingly,” mentioned the particular person.

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

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At about $1.8 billion price of APO, this deal additionally marks one of the biggest offers closed by TCS in current quarters. The largest deal closed by the corporate was within the final quarter and was price round $720 million. It al­so signed a big deal, estimated at round $1 billion with long-time associate M&S.The TCS-­led consortium contains Centre for Development of Telematics (C­DoT) and Tejas Networks. TCS father or mother Tata Sons has a majority stake in Bengaluru Based Tejas Networks. ET was the primary to report this growth 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 observe to exchanges. Tejas Networks additionally knowledgeable the exchanges about the transaction.

While TCS was chosen to provide the 4G options late final yr, the deal signing took for much longer due to procedural and regulatory delays, which included clearance kind the BSNL board in addition to a Group of Ministers that was closed within the first week of May.

This deal will doubtlessly pitch the Tata Group consortium as an indigenous telecom network solutions provider towards international gamers like Ericsson, Nokia, Huawei amongst others. It may also enable TCS and Tejas Networks to take their 5G rollout choices to international telecom operators.

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