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ZTE to shut R&D operations in India: Report

Posted: 06 Feb 2013     Print Version  Bookmark and Share

Keywords:telecom equipment  R&D  India 

Chinese telecom equipment maker ZTE Corp. is reportedly planning to shut down its R&D operations in India.

The company is sharply scaling down its services business in the country to optimise costs amid reduced gear sales, The Economic Times quoted top executives aware of the development as saying.

China's second largest telecom vendor ZTE, which is also struggling hard to enter the U.S. market, said it will review its strategy on products and regional structures.

According to The ET report, ZTE has quietly reduced a majority of its near-60 strong research staff and asked the few remaining team members, earlier on the company's rolls, to opt for contract service.

The reduction was effected after ZTE India recently merged its R&D set-up in Bangalore with its Indian Engineering & Service Centre (IESC), which offers engineering support services for multiple telecom projects.

"But the impact on the company's services business is likely to be even more severe than R&D as contracts dry up amid reduced networks gear spending by mobile phone companies," the report said.

The company's ongoing restructuring even led five senior executives in the rank of vice president to project director in the services and enterprise sales divisions put in their papers last month.

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