India accelerates its telecom self-reliance as Tejas Networks completes BSNL’s 100,000-site deployment and Jio slashes 5G costs by 40%, reshaping global vendor dynamics.
State-owned BSNL’s 4G/5G network now runs entirely on Indian hardware through Tejas Networks, while Reliance Jio’s in-house tech cuts deployment costs, signaling a seismic shift in global telecom supply chains.
Domestic Tech Triumphs Reshape Market Dynamics
Tejas Networks, in collaboration with Tata Consultancy Services and Japan’s NEC, completed BSNL’s 100,000-site deployment in July 2024 using Open RAN architecture. CEO Rajiv Agarwal stated: ‘This proves Indian engineers can deliver carrier-grade networks without legacy vendors.’ The project utilized 72% locally sourced components, per Department of Telecommunications data.
Jio’s Vertical Integration Model Slashes Costs
Reliance Jio’s 5G stack, manufactured domestically with Sanmina Corp, reduced per-site expenses to $8,500 – 40% lower than initial deployments. ‘Our engineers reimagined the radio unit’s power architecture,’ revealed CTO Shyam Mardikar during Q1 2024 earnings call. Jio’s capex fell to $2.1 billion while adding 12 million 5G subscribers quarterly.
Global Vendors Feel the Squeeze
Nokia’s India revenue dropped 22% YoY in Q2 2024, as noted in their earnings report. Ericsson similarly reported 18% decline, attributing it to ‘market prioritization of local procurement norms.’ Meanwhile, Tejas secured a $120 million deal with Tanzania’s TTCL in July 2024, exporting Indian-made Open RAN units to Africa.
Monetization Challenges Persist
Despite 120 million 5G users, Jio’s ARPU grew just 1.8% QoQ to $2.6. Analysts cite lacking enterprise applications, though Bharti Airtel recently demonstrated smart factory solutions using the 5G spectrum auctioned in 2022.
Historical Context: From Software Services to Hardware Exports
India’s telecom hardware push mirrors its 1990s IT services boom. Where Infosys and Wipro revolutionized software outsourcing, Tejas and Sterlite Tech now aim to capture 10% of the $100 billion global telecom gear market by 2027. The Production-Linked Incentive scheme, expanded in 2023 to include 5G core components, has already attracted 42 manufacturers committing $2.1 billion in investments.
Precedent: UPI’s Domestic Success Goes Global
Like India’s Unified Payments Interface (UPI) – adopted by France and UAE in 2023 after domestic dominance – the telecom strategy combines scale and localization. As UPI processed 12 billion monthly transactions in 2024, telecom exports target Global South markets needing affordable infrastructure. Tanzania’s TTCL deal follows Nigeria’s 2023 adoption of Tata Communications’ rural broadband solutions.
