Nortel Bows Out of India

Nortel has decided not to bid on new equipment contracts with Bharat Sanchar Nigam Ltd., which plans a $4.8-billion expansion of its wireless networks in India. Nortel chief strategy offficer George Riedel told the Ottawa Citizen that Nortel bowed out "because economically it was not as attractive as it needed to be." (translation: the margins are probably razor-thin so it will be difficult, if not impossible, to make any money from the deal). Nortel's reluctance to pursue more business with BSNL may have something to do with the fact it has lost $327 million to date on a $350-million deal to expand BSNL services to rural villages. BSNL said it will pick two winners to share the new contract from suppliers such as Ericsson, Nokia, Motorola, Siemens and China's ZTE. Alcatel will also get part of the deal through an alliance with Indian supplier ITI.

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3 Responses to “Nortel Bows Out of India”

  1. Anonymous Says:

    They were not going to win anyways. Competition is too stiff and margins are too thin. But with this they just lost the entire wireless/wireline boom in India. For the past decade, Nortel missed the plane, train and bus on its India strategy and doing anything now is too late.

    So maybe the adage is focus on strengths with at least a chance of winning.

  2. good company Says:

    Somebody is making a profit. These guys just don’t know how to wiht all the internal squabbling.

  3. Mehung Says:

    For once they know their limits and not try to bid something so that some sales guy can get a big commission check at the expense of the company.

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