Stress in telecom sector put brakes on new investments: UTStarcom

NEW DELHI: Hong Kong-based telecom infrastructure provider UTStarcom, for which India contributes as much as 50% of its worldwide business, said that the current telecom sector stress has led to a slowdown in capital investments by companies which has choked payments and resulted in a longer payment cycle.

In the last three years, the business was good in India, but this year, it has been slow due to the stress on the telecom operators. “Payments are stuck. The lead time is very high. Operators are going through tough times,” Rahul Pandey, Managing Director at UTStarcom India told ETT, and added, “investments have been put on hold, because of which capital investment is very slow.”