State-run BSNL issues advanced purchase order worth Rs 15,000 crore to TCS-led consortium for 4G deployment

Reports suggest that the purchase order to TCS is for 1,00,000 tower sites. As on date, BSNL has already deployed over 200 sites using indigenous technology in some parts of Punjab, including Amritsar and Pathankot. BSNL is aiming for a June-end launch of its 4G services, and is likely to target cities or circles with a high revenue potential. The company's 4G launch has been delayed by nearly three years due to various issues.

According to BSNL, Kerala, Maharashtra, Tamil Nadu, Karnataka and Punjab are some of the high revenue-earnings circles. The entire project cost is said to be worth Rs 24,500 crore.

In July last year, the Union Cabinet had approved a Rs 1.64 lakh crore package for the revival of BSNL over a period of four years. 70 percent of this package is supposed to be granted in the first two years itself.

BSNL currently has a debt burden of Rs 33,000 crore. The company will issue sovereign guarantee bonds to reduce its high cost of debt. BSNL has struggled to win customers after private rivals like Jio, Bharti Airtel and Vodafone Idea rolled out 4G services much earlier and cut data prices. In fact, Jio and Bharti Airtel have already launched their 5G services in most parts of the country.

Shares of TCS are trading 0.65 percent higher at Rs 3,243.7, while those of Tejas Networks are trading 2.2 percent higher at Rs 656.70.