Ericsson and Nokia eyes public sector procurement, seeks relief from government

Non-Chinese telecom vendors Nokia and Ericsson are seeking relaxation from the government in restrictive condition like local value addition to push the domestic equipment manufacturing in India. As reported by ET Telecom, the Delhi-based telecom group, which represents various multinational vendors, have asked DoT to define the value composition for hardware and software design and development as a part of local content. Ericsson spokesperson noted that the telecom gear supplier is seeking support from the government so that total value addition in India in products and services are taken into consideration for the public procurement policy.

Participation of Chinese Telecom Gear Vendors in Network Deployments is Unclear
The recent geopolitical situations between India and China have adversely affected the normal functioning of the telecom industry. The government of India has barred Chinese telecom gear makers from supplying equipment to state-owned telco BSNL and MTNL. Also, all the private telcos are slowly reducing the dependency on Chinese telecom gear makers and shifting to multinational vendors. Since the participation of Chinese vendors, Huawei and ZTE in state-run network deployments are not clear, multinational vendors Nokia and Ericsson are planning to pursue their local ambition, especially the public sector procurement.

State-owned telco BSNL has already cancelled its 4G network supply and upgrade tender worth Rs 9,000 Crore last month as the telco received allegations of discouraging local telecom vendors from participating in the auction.

Ericsson is Strengthening Local Competency For Network Design and Optimization
Swedish telecom gear maker Ericsson is turning out to be the best alternative of Chinese telecom vendors as it offers competitive pricing and services to the telcos. COAI Director General SP Kochhar stated in a letter that Ericsson has been investing in India for both state of art manufacturing facility and developing local competency for implementation, network design, optimization and support for telecom equipment being supplied to telecom operators in India. He also stated that various global original equipment makers have invested in R&D and innovation activities. However, due to the global nature operations, the IPR status of the companies resides outside India. COAI has asked DoT for revised procurement policy and a task force to study the current status of Indian telecom manufacturing, R&D creation and assessment of global and Indian equipment makers facilities in the country.

-TelecomTalk