India Banned Chinese operator Huawei and ZTE from its network which results in the only big networks that are operating now is Nokia and Ericsson.
Nokia is responsible for 40% of BSNL network Infrastructure. The Finnish company didn’t receive any payment from BSNL since March 2020.
If no monthly installment is paid by September 2020, Nokia will pull away from support and terminate all the employees working under the BSNL project. According to the service provider, Nokia is retaining the employees for the last four months as per the direction of the Prime Minister due to the COVID-19 crisis.
Currently, BSNL owes Rs 910 Crores out of which Rs 600 crores is pending for allocation since March 2020.
The Indian National operator has informed Nokia, due to the Pandemic crisis it’s finding it difficult to pay the due to its network partners. BSNL has assured in written confirmation that it will clear the dues from April 2020 on monthly installments but it has continued to default in spite of the written confirmation.
Nokia also added the long default in payment in this pandemic situation results in a significant financial loss to them, which started since July 2019. As a result the company has added 75 crores of interest on delayed payments.
In spite of the Government’s revival package to the BSNL, the dues were pending for more than 15 months. Also after the banning of all the Chinese providers, the Chinese ZTE is still waiting for its dues form the state-run telecom sector which is around Rs 1,000 Crores.