Global telecom equipment maker UTStarcom is planning to set up its manufacturing plant and a research and development centre in India after state-run telecom firm BSNL clears its dues.
The Hong Kong-based company supplies network gears for broadband service. Bharat Sanchar Nigam Limited and Tata Teleservices are two of its main clients.
The company said it already has approval for setting up the units but could not proceed as it is waiting for the clearance of its dues from BSNL, which is expected to cross Rs 500 crore by the end of this year.
"We have already approved plans from our management for manufacturing and the R&D (centre), but because of this slowdown and issues in the (dues) collection (we) have deferred our plans till December. The management will again review the position in December and after that, they will take the final decision," UTStarcom India Managing Director Rahul Pandey told PTI.
With an eye on upcoming 5G services, UTStarcom is developing network gears that can support 200 gigabits per second speed from next year onward, the company said.
The company had a turnover over of Rs 574 crore in the financial year 2018-19.
"We have done the investment in the area of transmission and broadband products. Similarly for Next-generation Network, we have supplied more than 30 lakh of the access ports in 2018-19, mostly to BSNL and Tata. We are expecting the market to revive next year," Pandey said.