The Hindu Business Line : Chinese cos Huawei, ZTE bag major orders from telecom PSUs

Ahead of Chinese President Mr Hu Jintao's visit to India from November 20-23, Chinese telecom equipment majors Huawei and ZTE have received major orders from the State-owned telecom companies, Mahanagar Telecom Nigam Ltd and Bharat Sanchar Nigam Ltd. While Huawei has won a Rs 220-crore order from MTNL to supply broadband equipment for 5 lakh subscribers, ZTE has bagged part of a 6-million line broadband project from BSNL. Both companies have been struggling to get large contracts in the Indian telecom market dominated by the likes of Ericsson, UTStarcom, Nokia and Siemens.

The contracts also assume significance in the light of the recent debate within the Government on doing business with unfriendly countries, including China. The proposals from ZTE and Huawei to start trading in India have also been put on hold by the Foreign Investment Promotion Board. Huawei was earlier in trouble, with BSNL blacklisting it after the company failed to deliver CDMA equipment on time. Huawei has also been under the scanner of security agencies for some time. Commenting on the new contract from MTNL, Mr Lin Yan Qing, Director (marketing), Huawei India said, "We are proud and happy at being selected by MTNL. Huawei is a global leader in providing broadband solutions. The products offered to MTNL have been deployed worldwide. The contract signifies our long-term commitment to the Indian market, which is a strategic market for us."

The other Chinese company ZTE was recently barred, due to technical reasons, from bidding for the 45-million GSM cellular line tender floated by BSNL.

ZTE sources said that the company was now in talks with private telecom service providers such as Bharti and Reliance for its network equipment.

In the mobile handset segment too, ZTE plans to bring its full range of GSM handsets to India, including the high-end email phones.

Huawei and ZTE have so far deployed more than 60 per cent of BSNL's broadband equipment across the country.

Chinese telecom manufacturers had launched their products here, but their plans hit a bump with security agencies raising questions. Subsequently the China Council for Promotion of International Trade, denied allegations that the telecom company had a military background.

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