Huawei Technologies, a Chinese telecom equipment vendor, is close to bagging $400-600 million (Rs 1,600-2,400 crore) network outsourcing contracts from service providers in the country. The company is in advanced stages of negotiations with four cellular operators and is expected to announce a couple of deals soon.
According to sources close to the development, Huawei is in advanced stages of negotiations with stated-owned telecom companies Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam, besides Vodafone-Essar. The company is also in talks with Bharti Airtel for a similar contract.
Huawei Chairperson Sun Yafang visited India last week and met key executives of telecom companies, including Reliance Communications Chairman Anil Ambani. Reliance has awarded a $200 million (Rs 800 crore) network expansion contract to the company.
Huawei is confident of signing at least three deals and going by the Reliance Communications deal, the industry analysts peg individual deal sizes at around $200-300 million. This means even if the company wins two deals, it will get around $400 at the lower end. On the higher end, the total deal size can go up to $600-800 million.
Bitten by the
outsourcing bug, domestic telecom service providers are looking at outsourcing their network expansion and management services to equipment vendors. This will enable them to focus on adding subscribers and improving the quality of services. v_arti_inline_advt">
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