Why there is no indian companies in network equipment manufacturing like Ericsson ?

raddy

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Hello EverybodyBeing the 2nd largest growing mobile phone user base, many indian companies now manufacturing the cellphones.IMHO, i would say that it self is a very late start.But as of now, as of my knowledge, No indian companies are manufacturing wireless network equipment for incorporating in Cell Tower Construction. I hope most of you would have known already that our government and private operators are procuring network equipment and Wireless communication devices from USA and China.What is the reason behind this?Why our Indian companies didn't tap the huge business opportunity?
 

manivas

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I think its the patents/royalities, because most of them are owned by Nokia, ericsson and motorola.Due to telecom revolution in India, the above companies are making huge profits
 

mgcarley

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There are plenty of equipment manufacturers in this country, you probably just don't know any of the names.
 
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There are plenty of equipment manufacturers in this country, you probably just don't know any of the names.
If they were big ..they would have come on newspapers and we would have known their names?

yea..i don't know a single indian company in cell phone towers business...
 

Sushubh

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well most people would never hear the names of OEM manufacturers either. HTC once manufactured phones for other companies which sold them under their own branding. same case with ZTE. ZTE is one of the largest phone seller in india. you do not hear about them because their phones are sold with other company brandings. Foxconn is probably the largest manufacturer of laptops in the world :p though their products are sold as Apple and Dell :D
 

mgcarley

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If they were big ..they would have come on newspapers and we would have known their names?

Not necessarily. Most are happy to go about doing their thing (tendering for selling CPEs to ISPs and such) and rolling in whatever cash they get given.

yea..i don't know a single indian company in cell phone towers business...

Anyone can build a tower, it's the equipment that goes on them that's the hard part. I think most of the providers prefer the foreign equipment for their access, but are happy to give the customers something made here at home.
 


raddy

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well most people would never hear the names of OEM manufacturers either. HTC once manufactured phones for other companies which sold them under their own branding. same case with ZTE. ZTE is one of the largest phone seller in india. you do not hear about them because their phones are sold with other company brandings. Foxconn is probably the largest manufacturer of laptops in the world :p though their products are sold as Apple and Dell :D
First of all ZTE is not an indian company, ZTE is a chinese company.
Moreover Wireless network equipment devices are not consumer facing equipments, so they may not require re-branding.

If patents and royalties are the roadblock for Indian companies for not being able to tap into the market then how where chinese companies tap the market?

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There are plenty of equipment manufacturers in this country, you probably just don't know any of the names.

Can you name them please ?

Very few companies are interested in joining hands with Indian Mobile phone manufacturers.
And most of the Indian mobile phone manufacturers are just rebranding the chinese handsets.
I heard that it is because, it would be very cheaper to import from china instead of manufacturing it here.
I heard that, our government is adding VAT to items manufactured here and not for goods imported from china.
 

mgcarley

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First of all ZTE is not an indian company, ZTE is a chinese company.

The point is that they were historically OEMs and you'd have never known their name.

If patents and royalties are the roadblock for Indian companies for not being able to tap into the market then how where chinese companies tap the market?

Chinese companies are willing to either spend the money or go through all of the trouble of corporate espionage. Sometimes both. In Indian companies, not so much is spent on R&D - they seem to expect the technology to be handed to them on a silver platter (at least, the basic policies that are in place at the moment certainly suggest that: in order to sell equipment in this country, MNCs have to share the source code to allow Indian companies to develop their own versions or whatever).

Can you name them please ?

Bharti (Beetel), HFCL, Shyam, Tata, ITI, BHEL, BEL, PUNCOM & SCL all manufacture equipment and components.

Very few companies are interested in joining hands with Indian Mobile phone manufacturers.
And most of the Indian mobile phone manufacturers are just rebranding the chinese handsets.
I heard that it is because, it would be very cheaper to import from china instead of manufacturing it here.
I heard that, our government is adding VAT to items manufactured here and not for goods imported from china.

Actually I have a feeling it's a quality issue more than a cost issue. India can manufacture things as cheaply (or more cheaply) than the Chinese, but the quality of Chinese equipment may be being perceived as being higher than Indian. The Chinese are selling worldwide - and a lot in India - whereas Indian companies are not for whatever reason. ZTE and Huawei are perfect examples of this - they're not the newest kids on the block, but in terms of market share they have just about sprung up overnight (that being in the last 3-5 years, compared to companies like Cisco, Ericsson, Motorola, NSN etc who have been dominating the landscape since the '90s or even earlier).