Nokia threatens to quit India’s BSNL, unless $120m debt is cleared immediately

Nokia is one of state owned BSNL’s biggest suppliers for its mobile networks which connect over 120 million people across India with voice and data services
Nokia, BSNL, India, Telecoms, Network


Finnish mobile network equipment provider, Nokia, has said that it will be forced to pull out of supplying equipment to India’s state owned telco BSNL, unless the company clears its debts “immediately”.

A report in India’s Financial Express claims that BSNL currently owes Nokia $120 million (910 crore rupees) for base stations, software and other network infrastructure components.

Nokia is responsible for around 40 per cent of the network equipment comprising BSNL’s networks. The Finnish tech giant has warned that BSNL’s reticence to make payment of its outstanding dues is starting to have a serious impact upon its financial performance and has warned that it may be forced to make job cuts.

“Given the Covid situation we are now under tremendous financial crunch and it would not be possible for Nokia to infuse any further capital in maintaining the installed equipment and hence continue any further support including AMC (annual maintenance contract) services,” Nokia said in a letter to the BSNL chairman PK Purwar, seen by the Financial Express. Nokia also sent a copy of the letter to India’s Telecom Secretary Anshu Prakash.

In total, BSNL owes Nokia $120 million (910 crore rupees) with around $80 million (600 crore rupees) remaining unpaid since at least January 2020. Nokia warned that BSNL’s continued non-payment could force it to make redundancies from its workforce.

“The non-payment by BSNL has adversely affected our cash flow which will now force us to take some major cost cutting measures to sustain ourselves in these difficult times, including terminating our employees dedicated to BSNL account,” the Nokia letter continued.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story