Chinese telecom equipment and Services Company, Huawei is looking for partnership with well tier-1 carriers in India for ensuring optimized revenue stream. Huawei India CEO Cai Liqun said that the company is hoping for more business with tier-1 companies like Bharti Airtel, Vodafone and Idea Cellular. Cai also informed that Huawei India will be making a investment of $2 billion in India over the next 5 years. However there is not guarantee for the returns.
Equipment suppliers to mobile phone operators in India have been witnessing lower sales recently. This was mainly due to the recent ruling of Supreme Court of India which revoked 122 existing 2G licenses of firms like Sistema Shyam and Uninor. Both these companies were clients of Huawei. The prevailing uncertainties in the telecom sector and the rising debts have been preventing telecom operators to invest in networking gear.
Business of Huawei India has been deeply impacted by the recent events in the telecom sector. The company however is taking time for optimizing operations and for improving internal capabilities so that they are prepared for growth in future. Huawei has already optimized itself for allocating more resources towards tier-1 companies. The company will also engage in business with broadband wireless access spectrum holders like Reliance Industries Limited and Bharti Airtel-Qualcomm this year.
Currently Huawei is facing stiff competition from ZTE and several other European companies which has prompted the company to revise its pricing. The long term strategy of Huawei is to balance price and quality while offering equipment and managed services. According to Cai Liqun, mobile operators in India mainly focus on total operating cost rather than on price.