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.