Saturday, October 29, 2005

BSNL threatens Huawei

Lightreading is reporting that BSNL has threatened Huawei that the latter may be excluded from all future contracts - fixed and wireless - because of its non-delivery of CDMA2000 systems. Huawei has alleged that HFCL - it local OEM partner is to blame for the non-delivery while HFCL (which does not have the best reputation in India) is pointing fingers at Huawei.

Huawei just announced setting up of a manufacturing plant in Bangalore to manufacture 3G equipment, fixed wireless terminals etc. in an attempt to adhere to local manufacturing requirements laid down by Mr. Maran. In spite of that, Huawei is getting into a lot of problems recently with BSNL - India's PTT - and the reasons behind the recent events are not clear. Sources allege that Huawei wants to bid direct (HFCL is just a middleman here adding no value) but for obvious reasons, the BSNL honchos do not like the direct approach. Come on, guys, they have to eat too!

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