Tejas Networks - Product based IT business in a favored sector?

Clarification from BSNL on 4G timelines . Hope this will help

The link where DOT has clarified about BSNL 4G launch by March 23 is here . So definitely it will be through Tejas and TCS - Tata group. https://telecomtalk.info/bsnl-india-tweets-about-4g-launch-timeline/593397/

There is latest development where DOT has urged BSNL to expedite 4G rollout. So the only company in India ready with such equipment’s is TEJAS Networks

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BSNL deal will boost TCS’ global telecom offerings, says COO

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without paywall link

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This was the most awaited news for TEJAS networks as this will not only multiply its order book but also enables it to demonstrate its technology with this it can globally get more business. Good for TATA group. Good for India and BSNL and MTNL customers.

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If someone has a subscription to The-Ken, pls share the summary of the post today.

While PE is definitely not the right matrix to valuate growing companies, Tejas is indeed costly. A lot of future has been priced in, at the current levels.

Disc: Invested.

There are many reports coming up. One can listen to the management commentary after Q2 results wherein they mentioned that Tejas Network has developed a low cost technology and a single product for both 4G and 5G . That is the component used for 4G can be upgraded to 5G with minimal cost.
This has led to global interest in their products. Infact in the commentary they also told that I’m the entire globe there are only 2 other companies who have the similar technology. In view of this the global companies are looking at the Company.
Please look at this article
https://www.business-standard.com/article/companies/c-dot-s-4g-and-5g-stack-attracts-global-attention-122112201124_1.html

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The article is behind a paywall…request you to provide the key take aways(have been through the concall).

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Agreed that they hv got global attention but Standalone 5G network is way ahead of non SA, which Tejas is providing.

Jio is rolling out 5G SA networks although cost will be high but it makes them future proof.

Point to ponder is what will be the impact on Tejas Revenue stream if everyone starts preferring SA 5G network in place of Non SA

What I think is Airtel and VI are the main client of Tejas
Now coming to advantages of NSA 5G network
Low cost
Fast and easy to deploy
Most important it can be a pathway to SA 5 G in future (in my understanding after sankhya lab acquisition this is possible) (NSA TO SA)

There r certain disadvantages
High energy consumption
Support less 5G use cases

Practically considering Indian average ARPU
NSA 5 G is best way to starting roll-out for Airtel and VI (may be enough for Tejas)

(My wild guess ) Jio doing SA 5 G in few cities only (on pan india base they may have to use NSA 5G)

Thanks

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Can you please confirm the source for point- Airtel and Vi are using Tejas products.

Few observations-

a. Management was claiming that they will scale International business as most of the service providers will need to change the backend infra to adopt 4G/5G as the mid mile infra was on Wireless only. Now even after 2-3 years there is no scale in operations in International business
b. In India they received orders for Bharatnet project but there were some issues in implementation and BSNL was not ready to clear the payments. Management was not transparent in disclosures. Still they have not received the entire money which was stuck
c. The Indian Service Providers were also expanding in last few years but they were not giving business to Tejas and mostly relying on Chinese-Taiwanese brands. Tejas could not get the chunk of that business. If the products manufactured by Tejas were robust and cost effective then the Indian SPs should have been their customers
d. The stake buy from Tata’s have triggered the stock rally but on ground numbers are still not visible

Disc: Was invested in Tejas Networks till few years ago. Sold the holdings at loss

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Please see the context of above post it was 5 G roll-out in India
Airtel already using Tejas products

https://www.tejasnetworks.com/newsroom-details/airtel-selects-tejas-networks-for-optical-network-expansion

VI has not announced specific date but they are interested in 5G roll-out and Tejas as a cheaper option (guess only no data on equipment price i have)

Now on your observation
A. Yes international business not scale up in two years but i am convinced reason given
First COVID and followed by chip shortages
B.you are spot-on but BSNL dues are getting cleared every quarter
C.at present i don’t have data to argue
D.on ground numbers are not visible…i think after entry of tata sons the balance sheet got strong due to cash infusion and providing larger vision
Now telecom operators will trust more for there capabilities to serve oder ultimately in one to two years things will change that’s my thesis

I see Tejas journey as first stuck in BSNL receivables COVID followed by chip shortages
And now with TATA 's support on track of real journey

Disclosure invested and biased

Thanks
Always like your pointed questions

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This is what I could gather from The-Ken article (behind the paywall) for two big players.

Reliance Jio

  • Has multi-year contracts with Ericsson and Nokia.
  • Nokia to provide equipment from its AirScale radio portfolio, including base stations, high-capacity 5G radio antennae, and remote radio heads. Ericsson will provide 5G RAN products and solutions and E-band microwave mobile transport solutions
  • To deploy a standalone 5G network. This needs a new core. JIO is building a 5G software stack with its own R&D team, along with Radisys (its US subsidiary).

Airtel

  • has signed agreements with Ericsson, Nokia and Samsung.
  • is placing a non-SA 5G network, leveraging the existing 4G infra.
  • has a partnership with TCS to build O-RAN-based radio and an indigenous 5G stack.
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Please look at this statement by management. Hope all will be clear to @nityanandparab

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USA has taken decision to ban Chinese telecom equipment’s. India also has taken such decision already. This is good for Indian Telecom equipment makers to export also. US bans Chinese telecom devices, citing ‘national security’ | Telecommunications News | Al Jazeera

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