China’s ZTE calls for lower 5G spectrum prices in India

New Delhi: ZTE, the Chinese telecom equipment maker, has said profitability is still a challenge for the company in India, where telcos are reeling under revenue pressure and high debt. The company also called for lower 5G spectrum prices to enable telcos to invest in networks and subsequently, generate revenue for the government.

“I don’t see a reasonable model of such a low ARPU-supporting operator business. It’s a very challenging situation for everyone in the industry,” Xiao Ming, ZTE’s president of global sales, told ET. “We are equally struggling in terms of profitability and we need to work hard together with telco partners.”

India is already the top data-consuming country in the world, with very competitive prices that yield low average revenue per user (ARPU), a key performance parameter.