Updated July 21, 2018 06:37:20 Indian telecom equipment maker Reliance Industries is buying $9.4 billion in equipment and software from Chinese telecoms company Huawei Technologies, a move that will bring the two countries closer in their search for advanced communications technology.
Reliance is also acquiring the technology from Cisco Systems Inc. and Tencent Holdings Ltd.
in a deal that is worth about $5.9 billion.
A Reliance spokesman said the purchase was “in line with the strategic partnership that we have in place with Huawei and the world’s leading telecom technology companies.”
Reliance’s acquisition of Huawei’s advanced technology and Huawei’s products will create a strategic partnership for Reliance to develop its own telecom network, said the spokesman, who declined to give details about the deal.
The move is a boon for Huawei, which has been struggling to gain a foothold in the emerging telecommunications market.
Huawei has long struggled to make a splash in the Indian market, but the Chinese company is now emerging as a global player in the telecom market.
The company recently made its global presence official by acquiring a controlling stake in Indian technology giant SoftBank Corp. for $3.5 billion.
Reliant’s purchase will boost the telecoms group’s presence in the global telecommunications market, where it has had a difficult time competing with China’s Huawei Technologies Corp. Relias top-selling product, which is now the fourth-largest in India, is its 3G cellular network.
The Huawei-built technology allows Reliance phones to connect to 3G networks in India and provide users with faster data speeds.
Relishast is also developing LTE and 5G networks for its customers in India.
“This is the first step towards a global network of network technology in India,” said the Reliance chairman and managing director, Praveen Swamy.
Reliiance Technologies has been looking to expand its presence in India for some time, and has a presence in three other countries, including Singapore, which was the largest foreign investor in Reliance, in 2017.
Huawei Technologies shares fell by about 2 percent on Wednesday, while Reliance shares were down 1.5 percent.
Relies revenue fell 12 percent in the June quarter from a year earlier, and the company’s net profit declined 4.5% to $3 billion.