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US$3 Billion Jackpot for Kit-Makers in India
(07 Sep 2010, BWCS Staff)The recent 3G auctions in India are set to net mobile equipment makers a US$3 billion bonanza, according to the Economic Times in India. The newspaper claims that the wave of network building set to take place across the subcontinent will make it the hottest telecoms market over the next twelve months. All of which will, of course, be music to the ears of mobile network suppliers struggling to find new contracts in developed markets.
The huge equipment contracts will be placed within the next thirty days, says the newspaper, quoting executives from the six successful 3G bidders. Vodafone Essar is reportedly on the verge of signing a US$500 million 3G equipment order with existing vendors, Ericsson and Nokia Siemens. A similar deal with the same two supply companies looks set to be inked by Bharti Airtel - the country's largest telecom company, in terms of both revenues and customers. The size of the contract is rumoured to be around US$700 million, although this has yet to be confirmed.
Newcomer, Idea Cellular, seems set to spread the cheer around somewhat by signing up a mixture of 3G suppliers, said to include Nokia-Siemens Networks, Ericsson , Huawei and ZTE. Idea is reportedly ready to splurge US$500 million on its future networks in its eleven telecoms circles. Meanwhile, Tata Teleservices has already said that it will rely on Chinese company Huawei for the implementation of 3G services in five of its nine circles, while Nokia Siemens Networks will likely be signed up in the other four.
Aircel is also set to spend some US$500 million on its 3G networks though it has yet to announce who it is considering for the job.
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