Huawei Seeking to Rebuild Infrastructure Sales in India Following Slump
Published on: 6th Mar 2014
By: Ian Mansfield
China's Huawei is in talks with India's top mobile networks as the company seeks to reverse a decline in infrastructure orders following the collapse of the smaller networks in the wake of the 2008 GSM license cancellations.
The scandal saw Huawei's Indian revenue slump to $800 million in 2013 from $2 billion in 2009.
In addition to the GSM license cancellation in 2012, the company has been constantly dogged by security rumours, which have hurt the company in a country which is particularly sensitive to the matter.
"This market has a huge population, potential is very huge." India Chief Executive Cai Liquin told the Economic Times. "So, even as business dropped in the last few years, we still continued to invest,"
"The security issue is behind us. The operators and the government understand us," he added, noting that the company will be opening an Indian R&D facility that can employ some 5,000 people later this year.
Huawei's security problems often saw it barred from bidding for contracts from BSNL where they bordered Pakistan or China, although those contracts were themselves often cancelled and delayed, so even the winning bidders struggled with them.
Cai Liquin said that expects revenues from India to return to the 2009 high point within the next three to five years.
One of the big issues for the company though is the expected wave of consolidation that could see the country cut down to maybe six major networks. That will see fewer base stations overall and less network infrastructure, although in the medium term there will be LTE upgrades to compete for.
On the web: Economic Times