The Center adopts a multi-vendor model for the state-run telecommunications operator Bharat Sanchar Nigam Limited (BSNL) to roll out the 4 G network of the ailing Telecommunication company. Under the multi – Vendor – led model, the 4 G network will be designed and operated by a system integrator which purchases and assembles hardware and software from various companies such as Nokia, Ericsson, and other foreign vendors. The system integrator will be an Indian company.
The government is exploring a multi-vendor-led model to roll out the new BSNL network after cancelling the Rs 8,697-crore 4 G tender and blocking Chinese vendors such as Huawei and ZTE under new guidelines that prohibit procurement by government and public sector undertakings from companies based in countries that share a land border with India. The government is exploring this new model for the deployment of a new BSNL network.
It is a new model that is being tried globally and for BSNL, as the system integrator would be an Indian company, it will offer the touch of the network being developed by a domestic firm. Analysts feel that trying this new approach will be detrimental given BSNL’s poor financial condition, especially since the company is a late starter in the 4 G business.A DoT committee is finalizing the technical details for the BSNL network’s rollout and is expected to present its report soon.
Most private mobile operators have built their networks to a single vendor through turnkey contracts which they also manage under a managed service agreement after commissioning. It should be noted that most private telecommunication companies have developed their networks to a single provider through turnkey contracts, which also operates the networks under an arrangement for managed services. Nonetheless, due to the involvement of multiple vendors, the system integrator approach may lead to technological errors or quality issues. It saves costs and improves efficiency in networks. The network will have components of several players in the system integrator model, basically by assembling them, which can increase costs and lead to quality problems or technical failures.
Recently, the NITI Aayog had recommended that BSNL should only deploy locally designed and manufactured products for its 4 G roll-out, and the state-run firm should draft its new tender to support local equipment models. Analysts are believing that this new model will enable BSNL to increase its revenue and come out from its financial losses.
