Tech Mahindra will bid for the modified tender to provide the 4th generation (4G) devices to Bharat Sanchar Nigam Ltd (BSNL) partnering with state-owned ITI and other local business, which have constructed competence in building telecom software and devices, CEO C P Gurnani told ET.
Recently, BSNL cancelled the tender to update the existing 4G network throughout 47,000 sites and constructing new ability in Delhi and Mumbai for Mahanagar Telephone Nigam Limited (MTNL) after the government disallowed state-run telcos from sourcing devices from Chinese players Huawei and ZTE. ZTE had actually signed up with Nokia to bid for the tender, approximated to be around Rs 9,000 crore.
” We’re prepared to construct the digital highway for 4G or 5G. I think that the technology is mature and we can do the transition in the network and produce enough bandwidth,” Gurnani stated.
In June, Tech Mahindra signed a pact with state-run ITI Ltd to collectively design and manufacture 4G equipment and work on building abilities for 5G devices for the local market.
TechM, India’s 5th biggest IT services firm earns half of its $ 5.2 billion revenue from servicing telecom business such as AT&T and BT Plc.
Gurnani said the consortium of companies led by Tech Mahindra would provide a virtualized network, where it has proficiency and has partners in India.
” India has its abilities but we haven’t utilized it in a big format. I hope with this brand-new focus, a few of the Indian companies will get a possibility to reveal their expertise,” he stated on the relocation by the federal government to encourage Indian companies to participate in the tender.
In 2018, Tech Mahindra bought Altiostar, a United States business that establishes software application that allows virtualisation options on 4G and 5G networks enabling telecoms to construct end-to-end web-scale cloud native networks. Bharti Airtel has actually released the Altiostar solution in India.
” Both core network and radio network might be virtualized,” said Gurnani. “While 70%of the element might be virtualized; 30%will still stay in the hardware (to be produced by ITI).”
Tech Mahindra and ITI are also looking to tap the worldwide market with their updated 4G and 5G network devices based on the success with the BSNL tender and execute the solution.
” We’re waiting on the brand-new tender and this collaboration is for the domestic market. We will also try to globalise the option for the global markets,” siad Gurnani. (EoM)
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Here’s everything to know about BSNL’s revival strategy
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To assist the 2 ailing state-owned telcos, Mahanagar Telephone Nigam Limited (MTNL) and Bharat Sanchar Nigam Limited (BSNL) conquer their long salary dues and meet the everyday capital requirement, the government intervened and presented a Rs 69,000 crore worth four-step revival process on October 23,2019 The steps were required to help telecom providers overcome monetary tension.
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Voluntary Retirement Scheme
As a part of revival strategy, the government introduced Voluntary Retirement Plan (VRS) under which any staff member above the age of 53 and half, who opts for the VRS, will be provided 125%remuneration of the salary, pension and gratuity till the age of60
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The federal government stated to money the scheme by instilling capital in these public sector undertakings at a worth of Rs 20,140 crore. In addition, the GST amount of Rs 3,674 crore to this spectrum value will also be borne by the government through financial resources. BSNL has likewise looked for radio waves in the 2100 MHz spectrum for pan India operation other than in the Rajasthan circle, while MTNL, which just operates in 2 metros, has actually requested for the 1800 MHz spectrum in Delhi and 2100 MHz in Mumbai.
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The Cabinet has likewise authorized possessions monetisation worth Rs 38,000 crore over a duration of four years to raise resources for retiring debt, maintenance of bonds, network upgradation, growth and meeting the operational fund requirements.
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Raising Sovereign Bonds
To satisfy the urgent capital requirement, the government announced to raise Rs 15,000 crore by providing sovereign bonds, though its clearance is still pending from Ministry of Financing, however is anticipated to be cleared by February, 2020.
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Merger between BSNL and MTNL
In October, telecom minister Ravi Shankar Prasad said that the government aims to merge the two ailing firms– MTNL and BSNL as part of a revival package. On November 01, 2019, the government authorized the mega merger permitting MTNL to become a subsidiary of BSNL.