• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, April 1 ZTE Corporation has entered into a strategic partnership with China Development Bank to make available a significant portion of a $15-billion global credit line for Indian telecom service providers for buying equipment and handsets from the Chinese company.

While ZTE did not specify the exact quantum of credit specifically for India, more than $2-3 billion credit support can be expected for Indian operators. Telecom firms, which expected to invest about $15-20 billion on rolling out new network over the next few years, are finding it difficult to raise adequate funds given the economic slowdown.

While the move from ZTE will help Indian operators to buy equipment, it will also enable the Chinese company to enhance its market competitiveness in India currently dominated by European suppliers including Nokia Siemens and Ericsson.

Announcing the initiative, ZTE said, “Today, global and leading telecom operators in markets like India are under enormous pressure to develop next-generation telecom technologies, such as NGN, 3G and WiMax to meet market demands. However, in view of the current global financial crisis, a majority of mainstream financing agencies based in Europe and the US are trying to find ways how to address issues such as inadequate liquidity and credit crunch.

“This is where China Development Bank has an advantage by possessing healthy balance sheet as well as strong financing and credit ability, and sees positive future prospect for the global telecom industry.”

This initiative holds significance for the new players who are set to launch services in the country. Existing players have also drawn up large-scale expansion plans to offer 3G services and penetrate rural markets. “In order to address this opportunity, ZTE is looking at utilising a significant portion of the $15-billion credit line for Indian telecom operators,” the company said.

More Stories on : Telecommunications | Overseas Borrowings

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line