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State-owned BSNL has issued a tender to launch 5G services in Delhi, seeking bids from network providers and gear makers to roll out indigenous 5G in standalone (SA) architecture across 1,876 sites. The rollout is initially planned to serve 100,000 registered subscribers, with a simultaneous launch of fixed wireless access (FWA) broadband services.
Unlike 4G, the company intends to deploy 5G services on a revenue share model in Delhi, which is ‘5G-as-a-service model’, wherein capital expenditure (capex) and operating expenses (opex) will be taken care of by the selected bidder, according to the tender document. While the move is expected to open up further revenue opportunity for domestic network solution providers like TCS, Tejas, Infosys, VVDN, Lekha, among others, the condition of upfront capex and opex could hinder participation of such companies, industry executives said, adding that the revenue generation will take time.
According to the tender document reviewed by FE, BSNL will utilise the 900 MHz and 3300 MHz bands to provide 5G SA services across the designated sites. “The bidder shall plan, design, supply/deploy equipment and manage the operation of the 5G network within the LSA (licensed service area),” the document states.
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BSNL intends to partner with two service providers in Delhi: a primary 5GaaS provider and a secondary provider. The primary 5GaaSP will deploy one 5G SA core and a 5G-RAN using up to two original equipment manufacturers (OEMs), while the secondary provider will also deploy 5G-RAN equipment from up to two OEMs.
The document outlines that “all capex and operational opex on hardware-software for the 5G SA core and RAN equipment shall be borne by the 5GaaSP.” Additionally, any necessary structural upgrades to existing BSNL towers for 5G antenna accommodation will also be the responsibility and cost of the bidder.
With regard to revenue share, the same will be payable by BSNL to the selected bidders on revenue earned both from FWA and 5G mobile services.
As per the eligibility criteria, bidder company or consortium (with an OEM for 5G Core/ RAN (radio access network) shall have an average annual turnover of Rs 50 crore over the last three financial years till FY24.
The successful bidders will also have to pay performance bank guarantee of Rs 3 crore.
Bidder shall be OEM of either 5G SA core or 5G RAN, on the date of tender bid submission, the tender document said. Further, those bidders from countries that share a land border with India will be eligible to bid/participate in tender if they are registered with the competent authority.
BSNL is currently yet to launch its 4G services full-fledged pan-India. Officials said in Delhi the company has done some trials with local gear makers and therefore, the plan is to expedite the launch of indigenous 5G services simultaneously.
“It is a victory for 5G live trials by 4 parallel VoICE Consortium teams using BSNL Spectrum. Next step for us is to identify domestic investors who can support domestic 5G stakeholders in these bids,” Rakesh Bhatnagar, director general of VoICE said. VoICE represents domestic telecom solution providers.
“Real challenge is to get the funds as BSNL and MTNL are not providing any funding,” Bhatnagar added.
Bids for the tender can be submitted by November 22. The bidder is also required to furnish a bid security for an amount of Rs 50 lakh.
The duration of contract between BSNL and service providers will be 7 years from the date of commissioning of 5G network and it being ready to use for offering services to end customers. After 7 years, BSNL shall be at liberty to extend contract for next 3 years or more on mutually agreed terms and conditions, according to the tender document.
The bidder with the highest revenue share offer to BSNL shall be considered for awarding the work, the company said.
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