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Two Telecom Vendors Clinch Indian Deals
[December 01, 2006]

Two Telecom Vendors Clinch Indian Deals


(Comtex Business Via Thomson Dialog NewsEdge) NEW DELHI, Dec 01, 2006 (SinoCast China IT Watch via COMTEX) --Two telecom equipment producers have entered agreement upon their cooperation with India's MCorpGlobal, according to the announcement on the web site of the Indian company.



The Chinese companies will finally march into India's telecom equipment sector through a strategic alliance when finding a direct entry into the sector difficult. The good news came out during Chinese chairman Hu Jintao's four-day visit to the country.

Local media in India reported that Hou Weigui, president of China's ZTE Corp., and B. K. Modi, MCorpGlobal's chairman, inked an agreement on November 21 to set up a joint venture in India.


Previously, ZTE, the second telecom equipment supplier in China's mainland, applied to increase the stake it holds in its Indian branch, but was refused by the Indian government. It was also declined to make inroads into the nation's telecom equipment sector.

The new venture will bring new hope to ZTE, and it will mainly import telecom facilities from the Chinese vendor. Both sides plan to build a research and development base as well as a works in India. The base will research and develop switches and wireless devices mainly tailored for India and Southeast Asia.

Modi told journalists that their agreement will be valid for three years and their telecom equipment deal is valued at USD 30 million. The two sides are expected to clinch another USD 150 million deal upon infrastructure facilities, the chairman noted.

Shenzhen Konka Telecommunications Technology Co., Ltd. has also wrapped up a strategic agreement with MCorpGlobal to make and sell mobile phones in India, disclosed the Indian company's announcement.

Shenzhen Konka is a telecom arm under the wing of Chinese consumer electronics giant Konka. Konka has not gone smooth in its operations in India. As early as in 1999, the giant established a TV plant in the country. But it retreated from India in 2001 and re-entered the market in 2003.

But republic relationship executives from both ZTE and Konka said that they knew nothing about the new deals in India.

Haier Telecom, the mobile phone subsidiary of a Qingdao- based home appliance producer Haier Group, is planning to create a software development center in India in order to cater to the needs of local mobile users.

The center will be mainly responsible for networked mobile gaming, streaming media, advertisements as well as content management and speech-enabled applications using BREW, J2ME and other technologies in both the GSM and CDMA networks

Now Haier is striving to find a head for its software development operation, project leaders and software engineers. It is still to be finalized where the software center will be located. Haier Telecom (India) Ltd., a telecom unit of the group, is based in Gurgaon, Haryana, northern India.

Additionally, Haier said that it is considering setting up a unit to making mobile phones in India within the following 18 months. The handset plan depends on whether it could realize the sales target of 5 million handsets within two years.

India has witnessed a rapid growth in its telecom industry these years and is possible to surpass China to become the world's largest telecom market.

Statistics from the nation's telecom regulators showed that the Indian market has been rising more than 50 percent yearly since 2000. Ended in June 2006, the number of its telephone users amounted to 150 million, and is estimated to jump to 278 million in 2010.

From 2005 to 2007, the nation's telecom equipment sector will have a comprehensive increase of 10 percent.

(USD 1 = CNY 7.84)

From dycj.ynet.com, Page 1, Thursday, November 30, 2006
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