Light Reading
Vendor financing is causing ructions in Africa.

China's Credit Line Blowback

Ray Le Maistre
1/13/2014
50%
50%

The thorny issue of vendor financing and the support that Huawei and ZTE get from China's banks won't go away.

As Light Reading has reported in the past, both of China's major vendors have struck hefty credit agreements that enable them to offer cheap vendor financing loans to customers. (See Huawei's Lucky Number: 30B, Huawei, ZTE Strike New Funding Deals, and ZTE Secures $15B, Highlights R&D.)

Now, as our contributing editor Robert Clark writes in a blog, Blowback: China's vendor financing brings its own problems, some of the resulting deals are attracting unwelcome attention.

As Clark notes, greater transparency would help alleviate some of the problems now escalating for the vendors in Africa.

Ray Le Maistre, Editor-in-Chief, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
R Clark
50%
50%
R Clark,
User Rank: Blogger
1/15/2014 | 2:29:44 AM
Re: What goes around, comes around
These huge loans for developing countries are kind of a political play, so EU countries are not quite so attractive for China. Also, unlike the African markets they're not building out much bigger greenfield networks.

Western govt don't provide the tens of billions of dollars that the Chinese state banks do. Plus the western banks & governments set some conditions on governance, which the Chinese don't do.

I'm guessing the reason there hasn't been a WTO compalint about  this is because a) the US and EU have too many other things on their plate with China  b) the vendors fear they would lose China market share. 

 
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
1/13/2014 | 8:22:22 AM
What goes around, comes around
The current issues facing Huawei and ZTE re vendor financing deals are in Africa, but it's hard to imagine there won't also be fallout in other markets (including some in Western Europe) where the availability of cheap credit has been a significant driver in strategic decision-making. 

It should be noted also that it's not only China's banks that make such credit lines available.
Educational Resources
sponsor supplied content
Educational Resources Archive
More Blogs from Shades of Ray
Not taking Iliad's bid for T-Mobile US seriously? Think again.
Experienced telecom editor Jason Meyers has joined the Light Reading team to focus on some of the hottest emerging sectors in the industry.
Can service providers afford to neglect small businesses in a FTTx, 4G world?
The open source NFV platform meeting in the Valley this week highlights some of the key shifts ongoing in telecom.
Did you see what happened when we mixed booze + balls at this year's Leading Lights awards party?
Flash Poll
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Hot Topics
Sprint CEO: Price Cuts First, Best Network Next
Sarah Reedy, Senior Editor, 8/14/2014
IoT Alert: Samsung Snaps Up SmartThings
Mari Silbey, Independent Technology Editor, 8/15/2014
Line-Powered Phone Lines: A Hot Topic Again
Carol Wilson, Editor-at-large, 8/20/2014
Analyst: Ericsson, Oracle Top Shrinking SDP World
Carol Wilson, Editor-at-large, 8/19/2014
Sprint's New Family Plans Double Down on Data
Sarah Reedy, Senior Editor, 8/18/2014
Like Us on Facebook
Twitter Feed