Friday, July 19, 2024

Localisation could potentially revitalize Chinese companies Huawei and ZTE in India, according to ET Telecom.

Changing Dynamics of Indian Telecom Industry: Chinese Equipment Set to Make a Mark via Joint Ventures

The Indian telecom industry is gearing up for a significant transformation as Chinese equipment is set to enter the market through joint venture arrangements with domestic companies. This development is expected to benefit both local telecom firms, who have been lacking in research and development efforts, and service entities who are seeking cost-effective solutions.

Despite facing resistance from some sections of the local industry, including startups with competitive products, Chinese players are making a comeback following recent developments. The easing of Indian regulations and the potential for joint ventures with majority Indian ownership are seen as positive steps to address industry concerns.

Huawei, a major player in the telecom technology space, has reported a substantial increase in net profit, signaling its resurgence. Similarly, ZTE, in collaboration with an Indian company, is gearing up to produce Wi-Fi 6 routers in the country.

Industry experts believe that Chinese products have historically represented value for money for cost-conscious players in the telecom sector. However, a careful and inclusive approach is necessary to bring Chinese players back into the mainstream and ensure the interests of all stakeholders are safeguarded.

Overall, the telecom industry in India is witnessing dynamic changes with the entry of Chinese equipment providers through joint ventures, promising a mix of technological innovation and cost-effectiveness for the market.

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