Chinese handsets, Chinese prices
ZTE plans manufacturing cellphones in India that too cheaper than, say, in China or Brazil.
By Kalyan Parbat, TNN |
KOLKATA: The dragon is about to invade the GSM handset market in India. China’s leading telecom gear maker, ZTE Corporation, is understood to be taking up battle position before launching the attack.
Senior ZTE personnel met Vodafone Group CEO Arun Sarin and Union communications minister Dayanidhi Maran at the 3GSM World Congress in Barcelona to discuss plans for setting up a world-class GSM handset manufacturing hub in India. This will primarily cater to Vodafone’s huge low-cost handset requirement for the India, Brazil and Russia markets.
ET has learnt that the possible locations discussed were Tamil Nadu and West Bengal. The discussions were held in the wake of Vodafone’s mega handset procurement deal with ZTE for emerging markets.
ZTE Telecom India chairman & managing director DK Ghosh told ET in Barcelona, “At this stage, I can only confirm that ZTE Corp is seriously considering opportunities of manufacturing ultra low-cost GSM handsets and telecom infrastructure equipment in India, especially in the backdrop of the Vodafone contract. A final decision is still some months away and can be taken only if the ZTE board feels manufacturing cellphones in India will be cheaper than, say, in China or Brazil.
ZTE will also assess whether the cost of making such phones in India will be lower than the landed cost of importing them from China, post-Budget.”
ZTE Telecom India is a wholly-owned subsidiary of the $7.3-billion ZTE Corp.
Indications are that the ZTE board will decide on churning out millions of low-cost GSM handsets for Vodafone in India once the UK giant takes a call on the per-unit procurement price of such handsets. Sources close to the talks hinted that ZTE is asking for a shade over $25 (Rs 1,100) per phone, but Vodafone is yet to take a call.
kalyan.parbat@timesgroup.com
Senior ZTE personnel met Vodafone Group CEO Arun Sarin and Union communications minister Dayanidhi Maran at the 3GSM World Congress in Barcelona to discuss plans for setting up a world-class GSM handset manufacturing hub in India. This will primarily cater to Vodafone’s huge low-cost handset requirement for the India, Brazil and Russia markets.
ET has learnt that the possible locations discussed were Tamil Nadu and West Bengal. The discussions were held in the wake of Vodafone’s mega handset procurement deal with ZTE for emerging markets.
ZTE Telecom India chairman & managing director DK Ghosh told ET in Barcelona, “At this stage, I can only confirm that ZTE Corp is seriously considering opportunities of manufacturing ultra low-cost GSM handsets and telecom infrastructure equipment in India, especially in the backdrop of the Vodafone contract. A final decision is still some months away and can be taken only if the ZTE board feels manufacturing cellphones in India will be cheaper than, say, in China or Brazil.
ZTE will also assess whether the cost of making such phones in India will be lower than the landed cost of importing them from China, post-Budget.”
ZTE Telecom India is a wholly-owned subsidiary of the $7.3-billion ZTE Corp.
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Commenting on the plans, Mr Ghosh said, “If we decide to make low-cost phones for Vodafone in India, the possible locations for our manufacturing facility could either be Tamil Nadu or West Bengal. There are no decisions yet, but nearly 50% of the production could be earmarked for Vodafone’s India requirements while the balance can meet its requirements in Brazil and Russia.”Indications are that the ZTE board will decide on churning out millions of low-cost GSM handsets for Vodafone in India once the UK giant takes a call on the per-unit procurement price of such handsets. Sources close to the talks hinted that ZTE is asking for a shade over $25 (Rs 1,100) per phone, but Vodafone is yet to take a call.
kalyan.parbat@timesgroup.com
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