Tata Aims Comeback In Telecom Industry Through BSNL
In an attempt to develop state-of-the-art data centres, Tata Consultancy Services (TCS) recently made a commitment of Rs 15,000 crore to BSNL
Tata, an Indian conglomerate, is planning to return to the telecommunications (telecom) industry through a collaboration with Bharat Sanchar Nigam or BSNL. In a strategic move, the partnership aims to provide high-speed internet to rural areas of the country along with a transition from 3G to 4G services.
Recently, in an attempt to develop state-of-the-art data centres, Tata Consultancy Services (TCS) made a commitment of Rs 15,000 crore to BSNL. The investment by the group seeks to bring advancements in the telecom infrastructure by majorly focusing on four regions.
The collaboration is aimed at bringing high-speed internet connectivity to the rural areas of the nation. The partnership also seeks to provide upgradation of internet services in 1,000 villages where BSNL has initiated the trials for 4G services.
However, since the news about the collaboration broke out, there have been rumours about the acquisition of BSNL by TATA. This move is a strategic investment rather than an acquisition. The collaboration not only marks TATA’s comeback in the telecom sector but also provides a major boost to BSNL in its efforts to be a key player in the country’s telecom infrastructure.
Recently, India’s leading telecom operators Jio, Airtel and Vodafone notified about tariff hikes, increasing the prices by 12 to 25 per cent. The hikes were aimed at increasing the average revenue per user (ARPU), in an attempt to cover the cost due to high investments in the 5G services. As a result, many users switched to BSNL, which is now looking at possible trials of 5G network in major cities to leverage the situation.
