Huawei Suspends Managed Services for Indian Network Over Unpaid Bills
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Huawei is reported to have called in the lawyers to get payment on overdue invoices from the Indian mobile network, Videocon Telecom.
Huawei has also suspended work on supporting the GSM network as part of their managed services agreement until the invoices are paid. It's claimed that around US$144 million is outstanding.
Videocon was awarded licenses in the controversial 2008 allocation and although its licenses were cancelled, the network is still operating pending its participation in the forthcoming reauction of the reclaimed radio spectrum.
Citing people familiar with the matter, the Economic Times reported that the outstanding invoices cover network infrastructure sales in July 2009 and ongoing managed services.
The paper said that the withdrawal of managed services could hit the network hardest in Mumbai, Gujarat, Madhya Pradesh, Punjab and Haryana. The telecom operator has a customer base of over 7.7 million.
On the web: Economic Times
Tags: [videocon] [huawei] [India]
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