Gear makers put the squeeze on new telcos
mydigitalfc.com
Telecom equipment manufacturers are frowning on the new entrants in the telecom space whose licences have been cancelled in the wake of the 2G scandal. Unable to recover dues from these service providers complaining of financial problems, equipment makers are demanding cash upfront for new equipment deliveries and rescheduling payment obligations on earlier supplies to avert defaults by operators. According to industry estimates, equipment makers have sold over $1 billion worth of 2G network gear to operators whose licences were cancelled by the Supreme Court. Post cancellation, there is excess inventory and equipment makers are being forced to bear capital loss.