COAI seeks Rs 20,000 crore from BSNL and MTNL

New Delhi: Financially beleaguered private telecom equipment makers have sought intervention of Department of Telecommunications (DoT) to get Rs 20,000 crore released immediately from BSNL and MTNL for the equipment supplied to them over last few years.

In a letter written to Anshu Prakash, Secretary DoT, the apex body representing the telecom equipment makers, COAI has urged, “ We kindly request the urgent intervention of your esteemed office in instructing all concerned Public Sector Units for the earliest release of their respective outstanding dues towards all Telecom & Network Equipment Manufacturers, Infrastructure Providers & Other Vendors Related to Telecom Services.”

Nokia, Huawei, Ericsson, ZTE, Sterlite, Indus, Cisco, Juniper, Qualcomm, Apple, Ciena, ECI, Facebook, Google, Amazon and ACT are prominent members of COAI.

“It is important that government should respond. The companies will go bankrupt and may have to shut shops. Most of the companies have stringent, Sarbanes–Oxley Act, so if they do not get money from they can face legal consequences.

A supplier is a partner in my business and should be protected,” said S D Saxena, former Director Finance of BSNL. He further warned that, if telecom equipment makers collapse, it could lead to duopoly in the market and operators may have to pay a high cost for telecom gears in future.

(To view our epaper please click here. For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal