Native telecommunication manufacturer overseas expand suffer setbacks again

In the global telecommunications market, always does not lack the Chinese manufacturers the form, but their strengths continually are also promoting. So-called high position invites criticism, because Huawei and zhongxing (hereafter refers to as “resurgence”) influence to be getting bigger and bigger, some traditional telecommunication manufacturers start to the emerging market to exert pressure, this caused overseas expansion of the China Telecom manufacturer repeatedly to receive the setback.

India ferments to promote the limit rule

The most recent news demonstrated that India was considering through a new bill, to limit to use the equipment which the foreign production telecommunication equipment China produces particularly, to stop up it the security loophole which exposes in last year’s Bombay terror attack.

If the above bill appears and becomes effective, means Huawei, resurgence and so on the Indian market many years China Telecom equipment business, possibly at this world most important emerging market bitter experience serious setback.

However, this plan has encountered the strong opposition of Indian telecom operator. In their opinion, if does not let their purchasing price cheap China equipment, then purchases the expensive western equipment, considerably will increase their operation costs. The manufacturers in some localities pointed out that forbids to purchase the China Telecom manufacturer the equipment to have the serious influence to the enterprise operation, because they have almost signed the purchase contract with the Huawei and resurgence.

Regardless of above plan whether to appear finally, what is undeniable, the Indian government aspect promoted the security to worry continually, indeed will give Huawei and resurgence and other Chinese manufacturers will have brought many uncertainties in the development in locality from now on.

The traditional telecommunication manufacturer taking the opportunity suppresses

The data demonstrated that Huawei in 2008 breaks through 1.3 billion US dollars in sales volume in India, but the resurgence has also been over 1 billion US dollars in the Indian market’s sales volume, this is equal to the Indian telecom equipment market share one-third.

At present, India became outside the Huawei first sea the market, the past three time passages for grew the doubling in the Indian market every year. Looked from the institutional setup that resurgence has set up 9 offices and 1 R&D center in India, but Huawei has achieved more than 4000 people in work staff total in India.

“Rapid expansion of Huawei and resurgence, has formed the impact on the Western tradition’s telecommunication manufacturer.”The anonymous telecommunications industry expert told the reporter, this disturbance very possibly was the Western telecommunication equipment manufacture borrows after consultation hypes the national security to attack the China Telecom manufacturer.

Before this, Nokia, Alcatel Lucent, Ericsson and other companies once were dominating the Indian telecom market over 80% market shares, but after Huawei and resurgence enter, this pattern has been broken.

Attempts to break the traditional sale pattern

Although is facing the disadvantageous control, but the China Telecom manufacturer has not slowed down in overseas market’s expansion step. Some news said that the resurgence started to sell in India does not supplement the use contract the handset, before this company only through and local telecom operator cooperation sale handset.

According to market survey company Gartner forecast that India sells approximately 120 million handsets every year, this digit to 2013 estimated that will grow to 160 million. At present, global biggest handset manufacturer Nokia is still the eldest child in Indian mobile handset market, holds approximately 60% shares.

The resurgence indicated that bridges over local telecom operator to sell the handset, is the hope enhances its handset in the Indian market’s sales volume, and from 16% enhances the company in the global mobile market’s percentage of 20%.

Business reporter Wu Chenguang (this article originates: Beijing Business author: Wu Chenguang)