Govt Receives 5 EoIs from Local Vendors for BSNL 4G Tender: What it Means for the Telco?

Sources report that HFCL, ITI Limited, Tech Mahindra, L&T, TCS and Galore Networks have submitted Express of Interest (EoI) for BSNL 4G Tender. The state-run telco aims to have 57,000 4G sites across the country.

Many are seeing 4G rollout as the only redeeming act for BSNL, that has been under the weather for quite some time now. The private telcos have raced far ahead of BSNL in terms of technology. With all Big Three gearing up for 5G rollout, and even MTNL doing 5G trials, BSNL is still struggling with a proper 4G rollout.

The state-run telco has not been able to keep up with the breakneck speeds at which the industry has progressed. However, a successful tender sale will significantly boost its chances to catch up.

5 Companies Submit EoI for BSNL 4G Tender

In total, 5 companies have submitted 4 EoIs to the telco. HFCL, L&T, Tech Mahindra and Galore Networks are going for individual bids, while ITI and TCS are going for a joint bid.

First, HFCL and L&T have submitted their bids with PertSol for core and US-based Mavenir for radio. Tech Mahindra is also going with PertSol for core, but it has chosen Sterlite for radio. Second, ITI and TCS submitted their bid with state-run C-DoT for core and Tejas Networks for radio. The two companies have submitted an all-Indian, joint bid, sources report. Incidentally, the bid by Galore Networks has surprised many. The company claims to offer end-to-end solutions focused on 5G, IoT and legacy network products ranging from 2G, 3G and 4G. Sources also said that Galore isn't going with any core or radio tech partners in their EoI.

These companies, called master system integrators (MSIs), submitted their EoIs last Tuesday. Now, BSNL has to finalize and give a letter of intent to qualified bidders. After that, these bidders will have to submit a BG of ₹5 Crore to start proof of concept (PoC). Further, the telco has set the timeline of the PoC at four months.

A person working with a local vendor told ET, "Selected MSIs will have to do PoC. There are eight cities in total and every MSI will get one city, where they will have to deploy RAN and core under the PoC to test their technologies. Once successful, they will be allowed to participate in the tender". Otherwise, the telco believes the specified rollout timelines would also get extended.

Will There be International Vendors in BSNL 4G Tender?

This particular vendor, announced by BSNL in January, focuses on deploying 4G network in four operational zones, along with Delhi and Mumbai circles. The telco invited bids for 57,000 4G sites on a turnkey basis. However, the ETG, or Empowered Technology Group, had not allowed the telco to invite bids from international telecom vendors.

However, the ETG approved the plan in late March. This plan will allow vendors like Nokia and Samsung to apply for the BSNL 4G tender. What's more, DoT also approved splitting the tender for 4G in two parts. This move also came a relief to the state-run telco, who was facing delays because of the slow pace of trials by Indian companies.

Sources now report that BSNL will bring out a new tender for 50,000 4G sites. The state-run telco will invite bids from global vendors as well as local ones in the reported fresh vendor.

BSNL 4G - A Work in Progress

The telco's 4G network launch has become a thorn in its side. Controversies involving local companies and their foreign rivals have only slowed the launch further. India's 4th largest telco even had to cancel the NIT it released in March last year as local companies protested against alleged restrictive conditions.

No one has yet been entirely happy with the way BSNL and the government has handled its 4G rollout. The telco is already half a decade late to the 4G club, and the controversies have not helped its cause either. With the world already moving fast to 5G, if BSNL play it right, it can capture a significant share of the 300 million who still rely on 2G.

For now, the BSNL 4G dream remains a work in progress.