India Cancels GSM Order On China's Huawei

Indian state-owned telecom operator BSNL has announced that it has canceled the 20 million GSM equipment order that it had previously placed with the Chinese telecom equipment maker Huawei.

In November 2009, after lengthy negotiations, BSNL decided to place a purchase order for mobile communication equipment that comprised of 20 million GSM lines for India's southern zone to Huawei Quanzhou. However, BSNL took the extreme action of order cancellation after Huawei raised its supply conditions. A spokesperson from Huawei refused to comment on this issue.

An executive from BSNL said that because the agreement was signed after detailed negotiations, the company would not accept any ancillary conditions. The executive refused to reveal the content of those additional conditions.

At present, BSNL is still talking with Ericsson about the GSM equipment bids for the northern and eastern zones of India, but no agreement has been reached yet.

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