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ZTE Closing Indian R&D Facilities - Reports

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China's ZTE is reportedly planning to close down its R&D facilities in India and will reduce its managed services teams as a result of reduced sales in the country.

The company did say that it would engage in cost-cutting measures when it announced a sharp fall in its profits for last year, but did not elaborate at the time.

According to local media reports, the Chinese company has already cut most of its 60 R&D staff in India following the merger of its Bangalore R&D unit and its local engineering service center.

ZTE has struggled to win any of the major contracts in the country, thanks in part to local government wariness about Chinese companies in general.

Their last major contract win was for a LTE deployment with Bharti Airtel inb October 2011, and that was put under scrutiny last August by the security authorities.

Cutting back on Indian facilities could however also hamper the company in winning future orders as the government is mandating that an increasing percentage of mobile infrastructure equipment be assembled locally.

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Tags: zte  India