TCS secures ₹2,903 crore advance purchase order from BSNL for 4G expansion

Tata Consultancy Services (TCS) has secured an add-on Advance Purchase Order (APO) worth ₹2,903.22 crore from Bharat Sanchar Nigam Limited (BSNL) for the deployment and maintenance of its 4G mobile network at 18,685 sites across India.

 

In a regulatory filing on Wednesday, TCS said the APO, received on May 20, includes planning, engineering, supply, installation, testing, commissioning and annual maintenance of the network infrastructure. Detailed purchase orders will follow, contingent on the fulfilment of conditions and documentation outlined in the APO.  An Advance Purchase Order, or APO is a formal indication from a buyer (in this case, BSNL) to a supplier (TCS) that the buyer intends to place a purchase order, subject to certain conditions. It typically outlines the scope of work, financial value, and general terms, but it is not the final or detailed purchase contract. Instead, it's a precursor to more detailed purchase orders, which will be issued after the conditions specified in the APO are met.

 

   

BSNL works with TCS to strengthen market position

BSNL, which has been struggling to regain market share, recorded a modest turnaround in March by adding 49,177 users after consecutive monthly losses, according to data from the Telecom Regulatory Authority of India (TRAI) shared earlier this month. The telcom, which has maintained consistent tariffs, had seen a surge in entry-level plan users last year, though additions tapered off by the end of 2024. 

This latest order builds on an existing agreement between TCS and BSNL and marks a significant step in the state-owned telecom operator’s national 4G rollout. 

 

The deal further strengthens TCS’s position in the telecom sector. It is expected to be a key revenue contributor, especially amid India's accelerating push towards widespread 4G coverage and eventual 5G adoption, the company said.

 

BSNL to add 100k new 4G towers this year

BSNL is targeting the deployment of 100,000 4G towers nationwide by June this year, part of its broader strategy to revive its position in India’s competitive telecom market. The TCS deal is expected to play a crucial role in achieving that milestone.

 

However, the state-owned telecom is still lagging behind market leader Reliance Jio, which continues to dominate subscriber additions with 2.17 million new users in March, accounting for 74 per cent of all wireless subscriber growth. Bharti Airtel added 1.25 million users during the same period, while Vodafone Idea (Vi) lost 0.54 million users.

 

TCS shares were trading up 0.46 per cent at ₹3,514 apiece on the BSE on Wednesday.