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Huawei Optimistic About Indian Telecom Sector

Telecom equipment maker Huawei is busy courting Reliance Industry chairman Mukesh Ambani as the 3G market in India is set to boom by the end of this year.

Ambani held secret talks with Huawei founder and CEO Ren Zhengfei as well as other executive as Reliance plans to enter the telecom market by the end of this year, DNA (opens in new tab)reports.

Ambani is expected to sign a multi-million dollar contract with Hauwei for Long Term Evolution (LTE) mobile technology.

Due partially to the lack of 3G services, the Indian telecom market has had subdued growth in the past two years but the trend is expected to change as telecoms prepare to go live with their 3G services by the end of this year.

Huawei expects the Indian telecom equipment market to grow to $10 billion in the next five years and is positioning itself to take a large piece of the pie. Some analysts believe growth will be slower, but still agree that the Indian telecom sector will have strong long term growth.

“Indian margins are lower than elsewhere in the world. We’ll concentrate on penetration and growth, and we’ll leave a small room in terms of pricing,” said Dabing He, president of marketing, enterprise business group, Huawei.