Profitability a big challenge here, says Huawei India CEO

NEW DELHI: Though business is picking up, driven by its handset and enterprise segments, China’s telecom equipment maker Huawei said profitability is a challenge in the Indian market in the midst of an industry consolidation.

Jay Chen, chief executive at Huawei India, told EThis company will continue to invest in India where surviving telcos need to expand capacity to cater to surging demand for data. He added that mandatory local sourcing of 36 telecom products for all centrally sponsored schemes under the preferential market access scheme would impact all equipment makers. “Profitability issue is an open issue and is a general challenge in the Indian market.

The industry is struggling and it is passing on the pressure,” Chen said.