Chinese companies: Welcome in India after all?

Posted by: Bruce Einhorn on January 5, 2009

Back in 2006, I blogged about some of the problems Chinese telecom equipment makers were having as they tried to break into the Indian market. The post had the headline “Chinese companies not welcome in India?” and looked at the problems of the two biggest Chinese telco equipment manufacturers, Huawei and ZTE. Now comes news from one of them that things aren’t looking nearly so bad, at least in one sector. According to a press release from ZTE, the Chinese company has become the top provider of next-generation network (“NGN”) equipment in the country, with 71% of the Indian NGN market. What’s an NGN, you ask? Here’s an easy definition from Webopedia: “A Next-Generation Network (NGN) is the term given to describe a telecommunications packet-based network that handles multiple types of traffic (such as voice, data, and multimedia). It is the convergence of service provider networks that includes the public switched telephone network (PSTN), the data network (the Internet), and, in some instances, the wireless network as well.”

Crows ZTE in a statement: “Today, a huge number of ZTE NGN voice equipment has been deployed in India, allowing the company to maintain firm hold of the market with the largest share of NGN voice equipment industry in the country. This proven track record, according to the report, will play a key role in ZTE’s successful bid for more contracts in India in the near future.”

Meanwhile, Huawei is making inroads in the country, too. A company exec told the Press Trust of India last month that Huawei expected to notch $2 billion in sales to Indian telecom operators in 2008, up from just $700 million in 2007.

Reader Comments

3Ps

January 5, 2009 9:08 PM

With Huawei's cutting-edge technologies and price level, who can beat it then?

James

January 5, 2009 10:40 PM

India is being sold to the highest bidder.

guna

January 6, 2009 5:38 AM

i feel chinese companies can succeed in commodious products and technology but we need cisco and alcatels for inovation in area of communication

Bob

January 7, 2009 1:28 AM

Huawei & ZTE both offer a complete set of telecom network and terminal equipment. Prices are extremely good and quality is also very good. India and other emerging markets will be able to build out their telecom infrastructure at a much lower cost then even China did themselves, because when China developed its onw telecom infrastructure in the last couple decades, they had to buy mostly western equipment while Huawei and ZTE did not have the same capabilities they enjoy today/

Xiaoting

January 7, 2009 11:07 AM

It looks like India will become like the US, have a huge imbalance of trade with China...I don't see a single Indian company doing 2Billion worth of business in China!

Krish

February 3, 2009 10:38 PM

For another 10 year,it would be difficult to draw comparison between two countries in general. India lags behind China heavily particularily in manufacturing sector and unless otherwise development been seen, we should not compare both. During this transition phase, Chinese companies should utilise opportunities to enter India market and exploit them before Indian companies realises their dreams.

Post a comment

 

About

Bloomberg Businessweek’s team of Asia reporters brings you the latest insights on business, politics, technology and culture from some of the world’s biggest and fastest-growing economies.

BW Mall - Sponsored Links

Buy a link now!