Network cos to switch on local production

Kolkata: Network vendors such as Ericsson, Huawei and Nokia and optic fibre cable (OFC) makers like Sterlite Technologies (STL) are likely to step up production at their local factories as more staff could return to work following relief provided by the home ministry through its fresh guidelines, two people aware of the matter said. Such a scenario, they said, will also help vendors ensure timely network gear and OFC supplies to telcos who are seeing an upsurge in voice and data services consumption as corporate staff works from home during the nationwide Covid-19 lockdown, which has been extended till May 3.

During the lockdown, telecom equipment makers have been operating factories with very skeletal staff, a scenario that could gradually change once relief measures kick in from April 20. Gear makers are also likely to manage their logistics and supply chains more effectively with the home ministry allowing inter-state and intra-state movement of goods traffic by rail and trucks from April 20. “The relaxation commencing on April 20 should help us in moving our network products more efficiently across the country,” an Ericsson India spokesperson told ET.

Network gear manufactured locally at the Swedish gear maker’s Pune factory is supplied both to telco clients in India and exported. Anand Agarwal, Group CEO at STL, said the relaxations will help in shipping goods to both its customers in India as well as globally, even though the company has been operating its India facilities partially under essential services.


Nokia India said it's monitoring the situation closely, while Huawei India said the easing of restrictions will help the industry to ensure uninterrupted communication services. Telcos though see the prospect of fibre cuts with resumption of construction activity and services disruption, if unchecked. “Resumption of road construction activity will lead to fibre cuts, causing disruptions,” said a Big 3 telco executive.