Asia Express - Mobile Communications
Bharti Airtel, Shyam-Sistema Separately Select Chinese Companies for 3G Network Equipment; Huawei to Open New Plant in Chennai by Year-end 2010
September 24, 2010
Indian leading mobile operator Bharti Airtel announced on September 20 the results of its 3G network equipment tender, which has been awarded to three telecom equipment suppliers, including Chinese Huawei, Swedish Ericsson, and Nokia Siemens Networks, India's Economic Times reported on September 21. With an aim to roll out 3G services by late December 2010, Bharti - which won 3G spectrum in 13 out of India's 22 telecom circles in May 2010 - has allocated seven circles to Ericsson, and three each to Nokia Siemens and Huawei, according to the same source. Financial details of the deal, however, were not yet disclosed. Other than Huawei, which was added to Bharti's 3G vender list for the first time, Ericsson and Nokia Siemens Networks both have been providing telecom equipment to Bharti since early 2000. To date, Bharti has signed five agreements each with Ericsson and Nokia Siemens Network.

 

On September 20, another India-based telecom operator Sistema Shyam announced that the company had selected Huawei, ZTE and Ericsson to help the company deliver and manage 3G services under the MTS brand, Dow Jones Newswires reported on September 20. Financial details of the deals were not yet disclosed but the deal size is estimated to close to 1.50 billion Rupees (US$32.9 million; US$1 = 45.56). Sistema Shyam, which currently has operations in 12 of India's 22 telecom circles, has been given Huawei the eastern region of India, Ericsson the north region and ZTE the southern region, according to the same source.  

The deals to Chinese telecom suppliers imply a relaxation in policy after the Indian government lifted the ban on imports of telecom equipment, especially from China.

 

In addition, Chinese telecom equipment supplier Huawei recently announced that the company will begin operations in its new Chennai plant around year-end 2010, Dow Jones Newswires reported on September 21. With a total floor are of 30,000 square feet, Huawei India stated that the new plant will produce telecom equipment, as part of its five-year US$500 million India investment plan announced earlier in January 2010, according to the same source. Financial details of the new plant, however, were not yet disclosed. Meanwhile, Huawei has over 2,000 employees at its R&D center situated at Bangalore.