Telecom Lead India: Huawei has suspended service
support to Videocon Group’s telecom unit and sent a legal notice for
non-payment of dues of about Rs 860 crore.
The matter is related to the purchase of 2G-network
equipment from Huawei in July 2009 and subsequent delivery of project services.
Videocon’s contractual dues include Rs 790 crore for network equipment
purchases and about Rs 71 crore for services.
Videocon has not paid 85 percent of the equipment contract,
amounting to $144 million.
The payment deadline was before February 2, when the Supreme
Court cancelled 122 mobile operation permits, in which Videocon lost its
In 2008 Videocon got 2G spectrum for 21 circles, and in
Punjab they operate as brand sharing agreement between QTL and Videocon.
“Huawei will adhere to international and local laws to
realize its overdue payment,” said a spokesman for Huawei.
managed services delivery obligations and supply of spares, which will hurt
Videocon’s operations in Mumbai, Gujarat, Madhya Pradesh, Punjab and Haryana.
Videocon will participate in the upcoming airwaves auction
in the 1,800 MHz band and has already met 50 percent of its rollout obligation
in the circles where it holds bandwidth.
Videocon has a customer base of over 7.7 million.
Videocon Telecom to invest Rs 1,200 crore in 2012 to expand
Recently, Videocon said that it plans to invest Rs 1,200
crore in 2012 to expand its mobile network in India.
Videocon Telecommunications has already invested
around Rs 10,000 crore to build the network.
Videocon Telecommunications gross revenue up 10.35% in Q3 2011
Videocon Telecommunications reported gross revenue of Rs
141.39 crore for the quarter ended 31, December 2011, up 10.35 percent against
Rs 128.13 crore for the quarter ended 30, September 2011.
For the quarter ended 31 December 2010, Videocon’s gross
revenue stood at Rs 99.86 crore.