« Consolidation in China | Main | Is Nortel an LBO Candidate? »
Nortel Still Keen on India
By Mark Evans | August 31, 2006
Despite losing nearly 100s of millions of dollars on a wireless contract with Indian wireless carrier BSNL, Nortel is apparently still digging around for contracts in India. According to CIOL, the company is in discussions with major wireless carriers about helping them reach customers in rural areas. This is a major mandate for the Ministry of Telecommunications, which wants 500 million wireless subscribers by 2010. Sanjay Jotshi, vice president (marketing), Nortel India told CyberMedia News “we are already in talks with the major telecos on the rural connectivity, but we are not in a position to reveal the name of the companies. It is a major market for the operators as it is a unraveled market.” While the Indian market is seeing strong growth, it’s a bit of a minefield for equipment suppliers - as Nortel painfully learned - because margins are razor-thin and costs can be variable. At the same time, there’s plenty of competition, including low-cost suppliers such as Huawei. Given Nortel’s track record in India, it would be wise to proceed with caution.
Topics: Wireless |