- 30 Sep 2022
- ICICIdirect Research
TCS reportedly likely to seal US$2 bn deal for BSNL 4G
TCS - 4554 Change: 41.95 (0.93 %)News:
According to The Economic Times, a TCS consortium (TCS, Tejas Networks) is likely to seal a US$2 billion deal for BSNL 4G rollout.
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The duration of the deal is not known but if we take a reference of past deals of TCS with Government of India (e.g. Passport seva, Post office deals), the deal duration. is likely to be in the range of around eight to 10 years and may include future 5G rollout for BSNL. If we take reference of Airtel partnership with TCS earlier, scope of work for TCS in the BSNL deal could be i) design of O-RAN network (software controlled hardware) and also TCS HOBS platform, which is being used by communications and media companies for subscription management while role of Tejas Network could be to provide optical equipment including switches, etc. We do not know the exact break-up between TCS and Tejas revenue share here but our guess is large part of it could come to TCS. Communication and media contributes ~7% of revenue for TCS and average CC growth for the last few quarters was in the range of 14-15% on a YoY basis.
Impact:
Positive.