Per the latest research report from BOfA, networking equipment has a total market size of $20bn representing the third highest spend in data center capex. Currently 3 global players (Cisco 28%, Arista 21% & Huawei - 9%) has captured more than 50% share in the networking products segment.
Huge opportunity for Tejas to make a dent in this segment and capture some market share from the incumbents.
This is a very promising project with great future potential I guess, but has a lot of challenges from regulatory, infrastructure and technical limitations.
Bumper results.
Link to Q2 Concall
Current order backlog is only 4845 cr , which Tejas will exhaust in less than 2 quarters at similar level of execution. Key factor to monitor is order wins. Management mentioned that the outcome of the Sanchar Net tender will be announced in the coming few weeks, and there are some delays with the Kavach.
Investor presentation, post the results yday
Direct to mobile -(D2M) Some relevant news related to D2M is here.
Prasar Bharati plans live telecast of TV channels on mobile phones, trial on
MIB, TRAI put weight behind D2M Broadcasting, says trial in progress
Can someone please help me to understand the impact on the business of this company once the Starlink services become functional in India. Thanks in advance.
Business opportunities
Looking for a game-changing Multi-Service Provisioning Platform? Look no further than the new TJ1280 MSPP💡
“Game changing” is such an overused and abused word now a days…not sure if it is ChatGPT generated marketing line!!!
Anyone from telecom background can explain if this product has any earth shattering features or any advantages over competition? More importantly, what is the target addressable market, growth potential and whether Tejas will have any edge because of this product?
Disclaimer: Invested, but searching for more evidence to continue investments beyond the BSNL project completion horizon
I worked in telecom company and was buying Tejas products for a very long time. I dont have specific comment for this product but I can tell you for sure that all of Tejas products are for very low end applications. They are no comparison to what is on offer by CISCO, CIENA, Huawei, Alcatel etc. They are not even shrotlisted for RFP’s which require high capacity complex networks. In terms of technology and product development they are atleast 5 - 10 years behind global vendors in optics space.
The product is question i.e. 1280 is for STM 1 to STM 16 migration. STM tech is very old and most networks are now on boxes which have much higher capacities. The boxes that were procured some years back were already capable for handling 10G and more capacity and had 10U + space where you could populate 1G in each slot. These boxes, prima facie, seem very standard boxes with nothing unique about them.
Happy to be corrected with facts.
I spoke to a person who holds a pretty high position in BSNL in Bangalore. He was of the opinion that the quality and technology of Tejas’s products are far behind the international players and they had no choice in the matter. He was more disgruntled by the fact that some of the contracts were given to C-DoT which has zero competency in those respective matters. I am not sure how far or close to the ground truth his opinions are as it was the first time met this person. Some executives can be disgruntled by the absence of procurement kickbacks.
I am invested in this from a medium term perspective. The recruitment of Anand Atreya as the CEO was a huge plus, he used to be the Chief Product Officer at Juniper and he would clearly know the gaps in Tejas’s offering, if he can guide Tejas’s R&D team, which looks very competent on paper, in the right direction we may close in on the global players in some aspects sooner, if that happens Tejas actually makes for a good long-term bet as well.
I have heard similar remarks from someone I spoke in the industry, but this is what confuses me.
Govt of India intend to build telecom ecosystem within country for various reasons, so the consortiums doing BSNL/BharatNet, implementations are understandable.
But how’s Tejas able to sell their products globally and is planning to go big in some geographies. Why would anyone settle for outdated tech?
Mind expanding on low end applications of Tejas products? Are their products in 4G/5G networks are low end? They claim that total cost of ownership of Tejas is low in comparison to global biggies. If there is no major issue with quality of service, why would telecom providers not go for cheaper options?
Also what makes a network complex. Isn’t BSNL large and complex enough.
Would appreciate comments from those in the industry.
The employees in high position whether really understand the technology especially the latest technology is a question.
the TATA management is quite competent and latest top management in Tejas is excellent.
As already mentioned earlier the innovative technology developed by saankhya lab for D2M is yet to be launched. Waiting for this event.
Disc: long term invested
the telecom networks is very complex and requires, in todays world, large capacity boxes and latest tech. The current deployment in optics is DWDM tech and needs boxes which have capacity running in tera bytes.
The products which Tejas makes are not equipped for such applications. STM 1 to STM 16 is used for last mile connectivity. Transmission by STM boxes is a very old tech and as such the cost will also be low. When then say lowest cost is beacuse most big companies dont sell these tech ( happy to stand corrected but this is as per my info).
For DWDM applicaitons Tejas is not even qualified for the RFP’s issued by telcos. Find out how many bids they have won from Bharti and Jio. Not a single one.
Also lets make one thing clear, they sell transmission boxes which carry data. There is no differentiation between 4G and 5G when it comes to transmission of data. The capacity of each box required to transmit 4G and 5G data is higher since the applications are more data consuming. As such there is no 4G / 5G equipment in Transmission. These terms are for radio equipment only ( Nokia, Ericsson, Samsung and Huawei).
My sense is that Tejas was awarded BSNL contract to show and promote Make in India. That beside the BSNL contract is a services contract which majorly involves installation and commissioning and is very low margin.
Tatas ( Tata Com and TTSL ) are using their products but reluctantly. Tata Com has a very large base of Tejas Products and has no option but TTSL does not use them willingly, util they were bought out tejas was never qualified to supply to TTSL.
Happy to be corrected and proven otherwise.
Please check the offerings by Tejas for DWDM & OTN
compare these offerings with offerings from Ciena, Huawei and Alcatel.
The reason why they dont get selected for complex network requirements is that their products are inferior to ones from MNCs.
Check this OTN product from CIENA.
