TCS Secures Rs.2,903 Crore APO from BSNL for 4G Expansion
Bharat Sanchar Nigam Limited (BSNL) has granted Tata Consultancy Services (TCS) an additional Advance Purchase Order (APO) for Rs.2,903.22 crore to deploy and maintain its 4G mobile network at 18,685 locations throughout India.
The APO was received on May 20 and, according to TCS, covers network infrastructure planning, engineering, supply, installation, testing, commissioning, and yearly maintenance. Detailed purchase orders will be issued after the requirements and supporting paperwork specified in the APO are met.
A formal notification to a supplier (TCS) that a buyer (in this case, BSNL) plans to place a purchase order, subject to specific conditions, is called an Advance Purchase Order, or APO.
It is not the final or comprehensive purchase contract, but it usually describes the general terms, financial value, and scope of work.
It serves as a prelude to more thorough purchase orders, which will be issued following the fulfillment of the requirements outlined in the APO.
Following months of monthly losses, BSNL, which has been fighting to restore market share, saw a slight improvement in March, adding 49,177 users, according to figures released earlier this month by the Telecom Regulatory Authority of India (TRAI).
The telcom, which has kept its rates steady, saw a spike in the number of customers using its entry-level plans last year, but by the end of 2024, the additions had slowed.
This most recent order is a major step in the state-owned telecom operator's nationwide 4G rollout and expands on an existing arrangement between TCS and BSNL.
TCS's position in the telecom industry is further strengthened by the transaction. According to the corporation, it is anticipated to be a significant source of income, particularly in light of India's rapidly expanding 4G coverage and future 5G adoption.
By June of this year, BSNL hopes to have 100,000 4G towers up nationally as part of a larger plan to regain its place in the cutthroat Indian telecom industry. It is anticipated that the TCS agreement will be essential to reaching that goal.
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With 2.17 million new customers in March—or 74 percent of all wireless subscriber growth—market leader Reliance Jio continues to dominate subscriber gains, while the state-owned telecom is still trailing behind. In the same time frame, Vodafone Idea (Vi) lost 0.54 million users, while Bharti Airtel gained 1.25 million.