Nortel bankruptcy may tell on BSNL ties, IT vendors unfazed
Canada-based telecom equipment maker Nortel Networks has been hit by bankruptcy, as a result of which its relationship with state-owned BSNL may be affected.business Updated: Jan 15, 2009 20:15 IST
Canada-based telecom equipment maker Nortel Networks has been hit by bankruptcy, as a result of which its relationship with state-owned BSNL may be affected.
However, software firms Infosys and Sasken say Nortel’s impact on their business is not significant. Wipro was optimistic that business would not be significantly affected.
Toronto-headquartered Nortel, which is the biggest maker of telecom equipment in North America, filed for bankruptcy ahead to its $107 million interest payment — after reporting a $3.4 billion quarterly loss in November.
In the US, its subsidiaries, including Nortel Networks and Nortel Networks Capital Corporation, had sought bankruptcy protection under Chapter 11 of the US Bankruptcy Code. The company’s 2,000-odd employees in India are so far not affected.
Among Indian telecom companies, Nortel supplied equipment to Bharat Sanchar Nigam Ltd (BSNL) and Reliance Communications. The company also supplied equipment to call centres.
"Nortel is one of the contenders for our GSM tender. However, the new developments will force us to review the situation," said Kuldeep Goyal, CMD of BSNL.
Wipro chief financial officer Manish Dugar said his firm expects a major portion of Nortel business to continue. Nortel accounts for less than 1.5 per cent of Wipro's business revenue, he said.