India's largest IT services company, Tata Consultancy Services (TCS), has recently secured a crucial add-on advance purchase order (APO) worth Rs 2,903.22 crore from Bharat Sanchar Nigam Limited (BSNL). The order pertains to planning, engineering, supply, installation, testing, commissioning and annual maintenance of 4G mobile network at 18,685 sites across the country. This deal is a significant step not only for TCS and BSNL, but also for India's telecom sector and the Digital India initiative. In this article, we will discuss in detail the significance of this deal, its impact, and future prospects.
1. TCS and BSNL partnership: A new chapter
Tata Consultancy Services (TCS) is one of the largest IT companies in India, known globally for its technological expertise. On the other hand, BSNL is a government telecom company that was lagging behind in competition from private telecom companies such as Jio and Airtel in the last few years. With this new order, TCS and BSNL together have formed a strong partnership to expand the 4G network in India.
This order is part of a larger Rs 15,000 crore deal that kicked off in 2023, in which TCS partnered with BSNL to set up data centres and 4G sites. This new Rs 2,903 crore order further strengthens this partnership, which aims to expand high-speed internet access in rural and urban areas of India
Key Points:
Order value: Rs 2,903.22 crore (including taxes)
- Scope: Expansion of 4G network to 18,685 sites
- Work: Planning, engineering, supply, installation, testing, commissioning and maintenance
2. BSNL's 4G rollout: Why is it important?
BSNL was lagging behind in the market for the last several years due to lack of 4G services. While private telecom companies rapidly implemented 4G and 5G services, BSNL's progress remained slow. However, in recent years the government has provided several financial packages to BSNL for revival, including an amount of more than Rs 3.22 lakh crore since 2019.
With this Rs 2,903 crore order, BSNL aims to install 1 lakh 4G towers across the country by June 2025. So far, about 75,000 towers have been installed, of which 60,000 have been commissioned. This will help strengthen BSNL's position in India's telecom sector and compete with private companies.
Key impacts:
- Better connectivity in rural areas
- Boost to Digital India and Make in India initiatives
- Tough competition to private telecom companies like Jio and Airtel
3. Role and technical expertise of TCS
TCS is playing a key role in this project. The company is not only providing technical support for setting up the 4G network, but is also ensuring that the network is ready for 5G services in the future. TCS has developed indigenous 4G technology in collaboration with the Centre for Development of Telematics (C-DOT), in line with the government's Make in India initiative.
Apart from this, Tata Group company Tejas Networks is also making a significant contribution to this project. Tejas Networks has received an order of Rs 1,525.53 crore (excluding taxes) from TCS, which includes the supply of Radio Access Network (RAN) and other equipment. This partnership is not only promoting technological innovation but also encouraging the production of indigenous telecom equipment in India.
Technical Contribution:
- Development of indigenous 4G stack
- Network deployment at 18,685 sites
- Laying the ground for future 5G upgrade
4. Impact on India's telecom sector
This order can prove to be a game-changer for India's telecom sector. BSNL, which was lagging behind in terms of customer base in the last few years, added 49,177 new mobile users in March 2025, which indicates its comeback. With this order, BSNL will not only be able to roll out its 4G services faster, but it will also help in increasing connectivity in rural areas.
Apart from this, this deal is also important for TCS. The company's CEO KK Krithivasan said in January 2025 that 70% of the BSNL contract work has been completed, and its revenue impact will start reducing from the fourth quarter of FY 2025. This new order will further strengthen TCS' telecom business.
Key Benefits:
- Bridging the digital divide between rural and urban areas
- Potential increase in BSNL's market share
- Revenue growth for TCS and strong position in the telecom sector
5. Promotion of Make in India and Digital India
This order is a big step for the government's Make in India and Digital India initiatives. The use of indigenous 4G technology and the involvement of Indian manufacturers like Tejas Networks will boost the production of telecom equipment in India. Also, this deal will promote digital inclusion by increasing access to high-speed internet in rural areas.
The government has recently approved additional funds of Rs 6,000 crore for BSNL and Mahanagar Telephone Nigam Limited (MTNL), which will further accelerate 4G network expansion. This investment is an important step towards making India digitally empowered.
Key Contributions:
- Use of indigenous technology
- Digital connectivity in rural India
- Self-reliance in the telecom sector
6. Future Prospects
With this order, BSNL aims to launch its 4G services by June 2025, which can create a strong competition for private telecom companies. Also, BSNL plans to move towards 5G services after the stabilization of the 4G network. The technical expertise of TCS and Tejas Networks will play an important role in accelerating this process.
TCS shares also saw a rise of more than 1% after this news, indicating investor confidence. This deal can prove to be an important milestone not only for BSNL and TCS, but also for India's telecom and IT sector.
Future Goals:
- Operationalise 1 lakh 4G towers by June 2025
- Lay the ground for 5G services
- Strengthen BSNL's position in the telecom sector
Conclusion
The Rs 2,903 crore order that TCS has received from BSNL is the beginning of a new revolution in India's telecom sector. This partnership will not only enable BSNL to compete with private telecom companies, but it will also make a significant contribution to enhancing digital connectivity in rural India and strengthening the Make in India initiative. With the technical expertise of TCS and Tejas Networks, this project will take India towards a digital and self-reliant future.