After witnessing slow growth through 2012, the Indian telecom sector witnessed some activity in 2013. Operators appointed vendors and other service providers to expand and modernise their networks as well as roll out new infrastructure. Telecom PSUs Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) – which have been criticised for poor quality of wireless services – focused on modernising their 2G/3G mobile networks. Further, deploying optic fibre cable (OFC) infrastructure was central to the deals signed by BSNL. Further, the operator is likely to seek the Telecom Commission’s approval for procuring network equipment from domestic vendors for its Left Wing Extremism project. Equipment worth Rs 30 billion will be procured from VNL Limited and Himachal Futuristic Communications Limited. The project is being undertaken by BSNL on the government’s mandate to set up GSM networks and wireless infrastructure across extremism-affected regions in Andhra Pradesh, Chhattisgarh, Jharkhand, Odisha, Bihar, Maharashtra, Madhya Pradesh, West Bengal and Uttar Pradesh.

Bharat Broadband Network Limited (BBNL), the implementing agency for the National Optical Fibre Network (NOFN) project, signed multiple contracts for the supply of OFC and other network/technology equipment during 2013. Other contracts related to cable laying and trenching operations are at the tendering and evaluation stages and are expected to be awarded in the next three to four months.

In the telecom infrastructure space, infrastructure sharing continued to be the key trend as Reliance Jio Infocomm Limited (RJIL) signed several strategic deals with Reliance Communications (RCOM) and Bharti Airtel for sharing towers and fibre across various circles.

The pace of project award for 4G equipment supply and network roll-out, which was sluggish through most of the year, has picked up. In December 2013, Aircel selected ZTE for the roll-out of 4G services in Chennai and Tamil Nadu. Bharti Airtel is reportedly in talks with the vendor for equipment supply and roll-out in the metro circles of Mumbai and Delhi.

Net, net, greater clarity on the policy and regulatory fronts during 2013 was an encouraging factor for  the industry, which was reflected in the several deals signed between operators and vendors.

Going forward, the industry expects commercial launch of 4G services by players who acquired broadband wireless access spectrum in 2010. This will result in more operator-vendor deals in the near future. Further, the successful bidders in the upcoming spectrum auctions are expected to undertake significant expansion as they acquire additional spectrum. Besides, the industry would witness some deals pertaining to the renewal of IT outsourcing contracts. For instance, Bharti Airtel is currently renegotiating its 10-year IT outsourcing contract with IBM and is reportedly planning to partner with other vendors such as Tech Mahindra, Tata Consultancy Services and Wipro for the deal.