Per my limited understanding and knowledge, the tie up with academia is a step in right direction as it entails management vision of:
- Harnessing the Indian tech prowess and selling to the world at competitive price points.
- Collaboration with academia will ensure that the company has the pipeline of engineers from top tier institutes. Similar sort of industry- academia tie-up’s are also now visible in other companies like Fineotex chemical who has also tied up with Sasmira institute for collaborative R&D.
- Consistent allocation of the financial resources in R&D and innovation to remain competitive with biggies like Ericson, Nokia etc.
- US based MNC’s like Manvenir are quite optimistic on the demand for Open RAN in India set to grow next year and is ramping up capacities to cater to the demand. Though the tie up with IIT is for 5G RAN but seems that this will have some common linkages.
Open RAN to ramp up in India by next year: Mavenir, Telecom News, ET Telecom - Additionally the existing contract with BSNL is for the deployment of 4G telecom gears at 1 lacs site which will eventually needs to be upgraded to 5G. Hence this deal may provide add-on’s for Tejas subsequently which will open up 5G RAN opportunities for which this licensing agreement has been entered into.
But for now, we have to track the execution capability and how margin profile (though would not be material as far as BSNL contract is concerned) pans out going forward.
Disc -Invested and Biased
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