Ciena’s 6500 Packet-Optical Platform and Tejas Networks offer a range of speeds for different applications, including 10G, 100G, and 2.5G to 800G:
Ciena’s 6500 Packet-Optical Platform
The 6500-S32 model has 32 service card slots that can be customized for 2.5G to 100G switched or 2.5G to 800G DWDM applications. The 6500 T-Series includes the WaveLogic 5 Extreme MOTR (WL5e MOTR) module.
Tejas Networks
Tejas Networks offers a range of products for different speeds and applications, including:
TJ1400: A compact platform for small data centers that need 10G speeds.
TJ1600: A high density packet aggregation node for large data center interconnects that need 100G speeds.
TJ1600-11: A high density metro aggregation and metro core solution with a digital cross-connect of up to 640G capacity.
DWDM systems: Tejas’ DWDM systems can transmit up to 1.2 Tbps per wavelength channel and have a total capacity of up to 64 Tbps.
I too have heard similar reviews about Tejas not being on par with well-established competitors. And I can understand why BSNL being a govt funded organization would give preference to Make in India solutions even if they have subpar QoS.
But then VI has gone with Tejas for upgrading their network infrastructure. And from what I could gather they are looking to upgrade back haul not just last mile connectivity.
Can someone from world of telecom shed some light on VI - Tejas deal?
Capacity issues can be addressed with more hardware. So it will not be an issue. Usually solution integrators have to balance these things. There are different considerations when doing
software only deal
hardware only deal
software + hardware deal and
software + hardware + solution deal
So just because Tejas has less capacity does not rule it out of the deal. The two biggest thing which is working in favor of Tejas, which every one knows is making telecom as national importance + indegnization. And TCS being system integrators.
I can understand govt favouring telecom infrastructure indigenous technology, but will that really affect preferences of private sector?
This is the first time a big private Telco has gone Tejas for their backhaul. Out of curiosity, Will TCS be SI for Vodafone Idea? If not, what changed that Indian private Telcos started considering Tejas, was it successful rollout of BSNL or new line up?
Disclaimer: Not too literate in the world of telecom.
Tejas is an incumbent supplier at VF as per my info. So not new to Vi, they have supplied in the past and bigger reason for this maybe that MNC vendors have huge amounts outstanding, there could be a possible credit freeze. They have just been awarded RAN business and there would be a issue with excessive exposure to VI which will be a risk. Extract from annual FY24 report …
There were a fringe player with VI and other private players but now VI has awarded some good business maybe for reasons which I have mentioned above
If the difference in performance is in order of 5-10%, then choosing Tejas over MNC kit is a no brainer. if the difference is 2X,10X, Tejas wouldn’t even be there in telecom space.
Some data is missing here and it could be that security trumps top tier performance.
Huawei and ZTE have been banned by India long back due to security reasons, the question here is about the capability of the vendor and whether they can compete with the best in the world as also be able to provide the best and state of the are equipment.
While I agree that a home grown company is necessary in critical sectors such as telecom, the discussion is about the capability.
Getting business from govt companies is more to support make in india initiative than to show case that they compete with the biggies.
I am again emphasizing that Tejas is not a bad company with what they supply but their business cannot be on basis the support or crutches that govt provides.
Mind you, its a good company and it takes a lot of guts and efforts to create a telecom company but in the course of their evolution they have been meeting just the basic needs and providng basic stuff. They have not been able to get any business in the mature markets. Getting business in Africa, Mexico is ok but they are not mature markets.
try to understand the context in which they have been awarded the business.
VI owed vendors more than Rs 2000 Crs and was outstanding for more than 3 years. The vendors were not ready to accept any new business till such time that the old dues were settled.
If you recollect, Nokia and Ericsson have converted their outstanding dues to equity and this is public info.
When there is a set of vendors who is not willing to accpet business from VI they will go with the next best option. It was never about price but more about who is willing to provide credit terms which allow VI flexibility.
Several recent messages are discussing concerns about the quality of Tejas Networks’ products. While this is valuable insight, as investors, the key question isn’t just about quality—it’s about whether there’s a significant market for their offerings.
A company producing Maruti 800 might be a better investment than one making cutting-edge autonomous cars if the former has good enough addressable market and more scalable demand.
I admit my understanding of the tech side here is limited, but it would be incredibly helpful if experts here could shed light on the Total Addressable Market (TAM) for Tejas. Specifically, how big is the opportunity in their target sectors, and how competitive are they in tapping into it? This kind of analysis can complement the discussion around product quality and give us a clearer picture as investors.
The discussion is not about the quality but of competitiveness of their products. The quality of tejas is fine and they will work as expected.
As regards TAM, they will keep getting business under Bharatnet. We need to understand that any such project will last for anywhere between 6 months to 1 year and next round of business will come once the capacity is filled up. By nature the telecom business is lumpy and is basis a project they get. Typically there is 1 or 2 RFP’s in market every year and the one that wins will have work for 12 to 24 months. They will get one odd business from VI’s of the world or from cable operators.
I agree that Maruti 800 maybe an investible business but the profitabiliity of Tejas is more from services business from Bharatnet and not majorly from products business. Check the pre TCS business and profitability.
The kicker for Tejas is Sankhya Labs and how it performs. Tejas may got more bharatnet business but it cant be a predictable annuity business.
My comments are not on the investability of the business but on the competitiveness and the telecom landscape.
I am not invested so nothing in my comments has any bias, its just that I have and am working in the telecom business so am aware of the dynamics.
I am not trying to make a case for investment or otherwise.
Thanks Hamir. Your industry insights have been helpful. My comment wasn’t directed at anyone specifically but was more of a general observation (including my own concerns on quality if you scroll up).
While it’s clear that Tejas needs to be competitive, they may just focus on excelling in specific niches or markets where they have an edge. E.g. price-sensitive markets like Asia and Africa. Aren’t they competitive enough to capture meaningful share in these regions? They do sell some in developed world too. What kind of customer in US opt to go with Tejas?
They will face competition against ZTE and Huawei since these companies are not restricted everywhere.
Also note that Huawei and ZTE supply e2e telecom systems and transmission is a small portion of the network.
So while Tejas can be competitive where standalone transmission systems are procured but not when entire telecom network is required, in which case it is very much possible that chinese vendors can undercut Tejas and for a buyer buying complete systems from single vendor makes sense.
Chinese vendors also get subsidy to sell their products worldwide specifically when faced with competition. Their govt likes to establish their clout through thier vendors.
In US the local telecom companies have incumbent vendors such as CIENA, Juniper and Alcatel - Nokia and also CISCO. Their networks are very mature and require high end boxes. To be able to compete there Tejas needs to make lot of changes to their products, price wise they will be execllent but not capability wise.
All major tech companies, such as Cisco, Nvidia, and Intel, have established their largest Centers of Excellence in India. For instance, when Dubai Airport transitioned its infrastructure from Nortel to Cisco in 2006, the entire team presenting the solution to stakeholders came from Cisco’s Center of Excellence in Bengaluru. The intellectual backbone of these global tech giants is driven by Indian talent. So, the question arises: why can’t an Indian company achieve similar global prominence? We have the talent, and Tata has the financial resources—it’s only a matter of time.
