Tejas Networks partners with Rakuten Symphony to co-develop global Open RAN 5G portfolio

Tejas Networks Limited (NSE: TEJASNET, BSE: 540595), a Tata Group-backed telecom solutions provider, has entered a multi-pronged strategic partnership with Rakuten Symphony to jointly develop and deploy interoperable Open RAN 5G solutions for domestic and international markets. Announced on June 25, 2025, the collaboration aims to integrate cloud-native software, radio hardware, and orchestration platforms to create scalable telecom network infrastructure that meets the growing demand for next-generation communication technologies.

Despite the announcement’s strategic significance, shares of Tejas Networks closed 0.73% lower at ₹696.00 on the National Stock Exchange, slipping from the previous close of ₹701.10. The stock opened higher at ₹704.00 but failed to sustain gains amid broader mid-cap volatility and cautious institutional positioning.

What are the core objectives of the Tejas Networks–Rakuten Symphony 5G collaboration?

The newly announced partnership will see Rakuten Symphony’s Central Unit (CU), Distributed Unit (DU) software, operations support systems (OSS), and edge cloud infrastructure integrated with Tejas Networks’ extensive 4G and 5G radio portfolio. Executives from both sides described the collaboration as a step toward building Open RAN-enabled, carrier-grade solutions that are modular, flexible, and built for global scalability.

Sharad Sriwastawa, President of Rakuten Symphony, noted that the goal is to leverage Rakuten’s orchestration and automation expertise to support diverse network deployments across regions. He highlighted the opportunity to jointly deliver network solutions that are open and high-performing, targeting the dynamic needs of mobile operators.

Kumar N. Sivarajan, Co-founder and Chief Technology Officer of Tejas Networks, explained that the field-tested RAN infrastructure from the Indian telecom gear maker will complement Rakuten’s software-defined network stack to offer comprehensive deployment solutions. This includes coverage for urban densification, rural connectivity, and emerging edge-cloud topologies.

How does this partnership enhance India’s positioning in the global Open RAN supply chain?

India has actively championed Open RAN as part of its broader “Atmanirbhar Bharat” and “Digital India” missions, particularly as it aims to build sovereign telecom capability. Tejas Networks has been a key player in this ecosystem, supplying fiber transport, optical access, and RAN products to Bharat Sanchar Nigam Limited and other state-run entities. With this alliance, the Indian telecom infrastructure developer is poised to extend its influence beyond national boundaries.

Rakuten Symphony, already recognized globally for its full-scale Open RAN deployment in Japan via Rakuten Mobile, brings credibility and deployment experience to the table. Its work in software-defined orchestration and its use of government-backed research through NEDO (New Energy and Industrial Technology Development Organization) offer a strong foundation for innovation.

Institutional investors have acknowledged this partnership as a strategically timed move to capitalize on global supply chain diversification trends. The disaggregation of telecom hardware and software is being increasingly embraced by operators seeking to lower costs, avoid vendor lock-in, and comply with geopolitical mandates around 5G security and infrastructure resilience.

What is the current stock market sentiment toward Tejas Networks following the announcement?

Despite the announcement being made on June 25 during market hours, Tejas Networks stock closed in the red, falling ₹5.10 or 0.73% to ₹696.00. The intraday chart showed selling pressure despite a strong open, with the stock hitting a low of ₹695.40 before closing marginally higher at ₹697.45. Volume Weighted Average Price (VWAP) stood at ₹698.90, indicating most trades occurred near support levels.

Analysts attributed the subdued reaction to investor wait-and-see behavior. Given that the deal does not include upfront revenue commitments or immediate contract wins, short-term expectations are muted. However, institutional sentiment remains broadly constructive on the long-term trajectory of the partnership, particularly if order conversions and new customer acquisitions materialize in the coming quarters.

How could this deal influence the revenue outlook and product roadmap for Tejas Networks?

While no financial terms were disclosed as part of the partnership, industry observers believe the collaboration could strengthen Tejas Networks’ global positioning in FY26 and beyond. By integrating Rakuten Symphony’s cloud-native stack, Tejas may evolve into a full-stack telecom solutions provider, addressing both brownfield and greenfield deployments across markets in Asia, Africa, and the Middle East.

Historically, Tejas Networks has relied on its optical transport systems for a bulk of its revenue. In FY24, the Indian telecom gear manufacturer posted consolidated revenues of approximately ₹1,200 crore, with a gross margin profile of around 42%. Expansion into software-defined RAN and Open RAN orchestration could enhance EBITDA margins, reduce hardware dependency, and build high-value recurring revenue streams through software licensing and managed services.

Investors will now look to upcoming earnings announcements and product showcases—particularly during India Mobile Congress 2025 and MWC Barcelona 2026—for clarity on contract pipeline, client conversions, and multi-region go-to-market traction.

What are the regulatory, technical, and operational benefits of Open RAN for global telecom networks?

Open RAN is being widely embraced for its promise of interoperability, vendor diversity, and network disaggregation. By separating baseband processing, radio hardware, and software orchestration, operators can optimize costs, accelerate deployment timelines, and scale upgrades faster.

From a regulatory standpoint, Open RAN aligns with multiple country-level initiatives promoting supply chain security and domestic manufacturing. In India, the Department of Telecommunications has encouraged Open RAN adoption through PLI schemes and import substitution policies. Meanwhile, in the United States and Europe, operators are being incentivized to pivot away from monolithic vendors due to security and political considerations.

Operationally, the ability to deploy flexible radio configurations using cloud-based orchestration and AI-driven optimization can reduce total cost of ownership by up to 30%, according to industry studies. This is particularly relevant in rural or low-ARPU markets, where cost efficiencies are critical.

The Tejas–Rakuten partnership seeks to address these challenges head-on, combining resilient Indian hardware with Japanese software innovation to create globally competitive solutions.

What are the strategic risks and execution hurdles that could affect the partnership’s success?

While the synergy between Tejas Networks and Rakuten Symphony appears compelling, market observers caution that integration complexity, regulatory approval timelines, and commercial rollout cycles could slow monetization. For example, the transition from traditional RAN to Open RAN often involves pilot deployments, vendor certification, and long procurement cycles.

In addition, competition remains intense, with players like Mavenir, Altiostar (a Rakuten acquisition), and Parallel Wireless already entrenched in the Open RAN domain. Success for Tejas will depend on its ability to rapidly validate solutions, secure reference deployments, and build a strong software support team capable of working across multiple cloud environments including AWS, Azure, and private telco clouds.

Moreover, the sustainability of demand for Open RAN, especially among Tier 1 operators, remains under scrutiny. While rural and greenfield deployments are surging, macroeconomic headwinds could delay capital expenditures in saturated markets.

What is the long-term investor outlook for Tejas Networks after the Rakuten Symphony tie-up?

Long-term investor sentiment remains anchored to the Tata Group’s strategic vision for Tejas Networks. With Panatone Finvest (a subsidiary of Tata Sons) as majority shareholder, Tejas is widely seen as a vehicle for India’s telecom technology independence and international expansion. The Rakuten partnership further strengthens this perception.

Analysts believe that successful execution of this collaboration could position Tejas Networks among the few end-to-end Open RAN solution providers globally, alongside major Western and East Asian peers. While financial gains may take time to reflect in earnings, the technological and strategic alignment provides a robust foundation for sustainable growth.

The stock could potentially re-rate if accompanied by formal contract wins or if the company announces financial guidance tied to the new Open RAN portfolio. Until then, investors may continue to trade the stock within a consolidation range.