Chapter 376 Customized Service
NEC's base station technology is indeed amazing, but it is too expensive.
Oda's position in the headquarters was not enough for him to offer Ron sufficiently favorable conditions.
A set of equipment costing hundreds of thousands of dollars may not seem expensive, but when you add up to hundreds or even thousands, it becomes a scary sight.
With Ron's financial resources, he could barely afford the construction of base stations in Mumbai, as he still had $300 million.
Unfortunately, he still has New Delhi and Chennai to take care of, both of which are big cities, and he can't just catch one and let them go.
Taking these places and Uttar Pradesh into account, it comes to more than a billion dollars.
No matter how much Oda helps him get preferential policies, he still has to pay $1 billion.
Tsk, Ron's little treasury was immediately in danger.
It turns out that only the state is suitable to get involved in the infrastructure of mobile communications.
But this is India, and the government is so weak that they know what's happening, so they've simply opened up the telecommunications industry to private capital.
Ron was still very envious of this huge market with a population of nearly one billion.
He is investing in the future. In seven or eight years, the number of mobile phone users in India will surely grow explosively.
If NEC is too expensive, then go to Todai.
As far as he knows, some old neighboring manufacturers have already begun to make efforts in this field.
So Ron made the call himself, and with the coordination of the relevant departments, he contacted Huazi.
Ron was not sure whether Huazi had this kind of business now, and Huazi didn't understand why the Indian suddenly wanted to find them.
As a result, after a brief communication, both parties were surprised.
That’s right, Huazi now actually has base station business.
They started with switches, and after several years of deep cultivation in the market, their business experienced an explosive growth.
Last year, in 1996, Huazi began investing in base station research and development.
The progress is very fast and there have been some results. They plan to hold a launch conference for base station equipment at the Yanjing Grand Hall in October.
Isn't this a coincidence? Ron found them half a year in advance.
What’s even more coincidental is that Huazi also makes GSM base station systems, which perfectly match the standard format specified by the Indian government.
Ron also learned that they not only make equipment, but also provide complete GSM system solutions.
That’s great. I was so sleepy that someone gave me a pillow.
Ron wants to work in mobile communications, but he has no experience. To be more precise, there are only a few people in India who have experience.
Whether it is the Ministry of Telecommunications or other private enterprises interested in this business, they will eventually have to seek technical support from abroad.
The same is true for Indian mobile communications. When he approached Oda, he was prepared to let NEC provide a full range of services.
Now that he heard that Huazi also had a solution, Ron immediately began to test their offer.
He directly stated that he would use Mumbai as a blueprint to build signal base stations covering the entire city.
The person who was originally talking to Ron was named Xu, but after hearing this, he switched to a person named Ren.
Huazi keenly realized that this was a big customer.
And the other party’s ambition may not only be Mumbai, but the whole of India.
You can tell from the name, Indian Mobile Communications, it’s obvious.
After learning that Ron needed a complete solution, Huazi held an urgent internal discussion and finally made a quote of $100,000.
This price is roughly equivalent to one-third of NEC, and the cost performance is very good.
Huazi has considered it very clearly internally that their GSM system is intended to compete with international brands.
The most effective way is to enter the market at a low price, this is a hard truth.
In addition, Huazi's base station equipment has not yet been released and its market prospects are unknown.
At this time, international users come to us actively, and we will give them more discounts to get the business.
However, just because it is cheap doesn’t mean Huazi doesn’t make money.
Dongda is famous for its low R&D costs, especially Huazi’s chips and circuit boards are all self-developed.
These two aspects alone make their base station costs about 50% lower than those of their foreign counterparts.
There is a profit of $100,000, especially if there are enough base stations, which can further reduce costs.
Huazi hopes to reach a deal with Sur Electric, as they have their eyes on the huge Indian market.
Soul Electric is no unknown company to the University of Tokyo. In the past three or four years, it has spent hundreds of millions of dollars on various purchases.
Of course Huazi has to show some sincerity for such a big customer. At least the other party paid very quickly.
After hearing the offer, Ron did not make a decision first, but made a request.
All base station equipment produced by Huazi must be labeled with Indian Mobile Communications and no Chinese logos can appear.
To put it bluntly, it is a full set of customization.
Indian Mobile Communications spent money to buy Huazi's design plan and then put its own name on it.
Quanziyan, a new domestic product!
The promotion can then be written like this:
Since its establishment in 1995, India Mobile Communications, a subsidiary of Sur Technologies Group, has invested hundreds of millions of dollars in research and development to enter the communications field.
After more than two years of painstaking research, we finally developed India’s first mobile communication base station!
With decades of technological accumulation from Motorola, Ericsson and Nokia, Sur Technology achieved a technological breakthrough in just two years.
My competitors are all idiots. Only our company, Sur Electric Appliances, spends its R&D funds wisely.
From now on, our great India will no longer have to worry about being strangled.
In one word, win!
That’s right, Ron not only wants to purchase Huazi’s communication base stations, he also wants to be a trader.
India is in the early stages of mobile communications development and will definitely need a large number of signal base stations in the future.
Imported goods are too expensive? If they are expensive, then you won’t buy them.
Come and take a look at the signal base station independently developed by India, which is cheap and easy to use.
NEC sells it for $350,000 per set, and I sell it for $150,000. That's reasonable, right?
If a price-killer like Sur Technology comes on the scene, the market might explode.
See, this is the power of customized R&D.
By the way, the signal base station cannot have the Indian Mobile Communications logo on it. It is best to set up a third-party shell company.
This is the only way to attract other mobile communication operators and dispel their concerns about being controlled by their peers.
All of these are subject to a prerequisite, that is, Huazi’s name cannot appear.
After all, the University of Tokyo is sensitive to India, and the Indian government may not be confident that Chinese people can access its communication system.
Changing the skin is important, this is what Ron insisted on.
Huazi hesitated for a while, but finally agreed.
Making money is the most important thing, and overseas markets and other things can be planned later.
There's no way, Ron is a wealthy man and gave too much.
The first thing he asked for was a huge order of 600 base stations worth 60 million US dollars.
Huazi’s total revenue last year was less than 4 billion yuan, and this deal alone earned 500 million yuan, accounting for one-eighth of its total sales last year.
It’s definitely a super big customer, and Lao Ren personally contacted him.
What's more, Ron also revealed that if the base stations built in Mumbai are effective, orders from New Delhi and Chennai will also be given to Huazi.
It’s a customized solution, so changing the name is no big deal.
Huazi not only does not object, but will also handle the order in a low-key manner to avoid publicity in newspapers.
Ron said he did a good job and knew how to cooperate with the promotion of Sur Technology's independent research and development.
Don’t wait until the website...ah, the official media newspapers publish the good news that “domestic equipment receives orders from Indian giants”.
That would be embarrassing. Once the news spread to India, Sur Technology's underwear would be exposed.
He doesn't care about his reputation. He is Mr. Sule.
The phone call was just preliminary communication, and the specific negotiations will still be led by Ashish and Yash.
Theoretically, Mumbai needs 900 base stations to achieve complete signal coverage.
However, when mobile phones were just starting out, there wasn’t so much to consider; a barely usable signal was fine.
Ron planned to place 400 of them in Mumbai, and the remaining 100 each in New Delhi and Lucknow, and set up the shelves first.
We didn’t get the license in Chennai, but the chances may be better next year.
If the pilot project in Mumbai goes well, he will expand coverage to the entire region.
Huazi said it would send a team of engineers to India for a long-term period to provide reliable after-sales technical support for Indian mobile communications.
That's right, whoever spends money is the boss.
After opening his mind, Ron turned around and threw Xiaotian aside.
What the hell, $350,000, they really treat him like a fat sheep to be slaughtered.
If I had known this earlier, I would have delayed the final payment.
Ron was wronging Oda. NEC's base stations are sold at such a high price, 15%-20% more expensive than their international counterparts.
Oda reported the incident to Central Japan, and then went to Sapphire to watch the girls dance again.
He thought that there were only a few companies in the world that could master base station technology, and Sur Electric had never cooperated with any of them.
After all, NEC was an acquaintance and knew him well. He also offered a 15% discount, making the deal a done deal.
Confident Oda is not in a hurry. He would rather focus on the sapphire.
Ever since Ron brought him here to play last time, Xiaotian has opened the door to a new world.
He fell in love with a girl here named Mona Lisa, who he noticed at first sight.
Other dancers simply imitated the movements of the original Bollywood musicals, trying to copy the gestures of those female stars.
But Mona Lisa's dance radiates energy from the inside out. People say that she taught herself to dance by looking in the mirror.
Oda watched Mona Lisa's performance intently, thinking that if this girl was born in Japan, she would definitely be able to reach the pinnacle of the Japanese entertainment industry.
The young girl next to Mona Lisa was wearing a blue sari and silk. She stopped dancing and suddenly stood still.
She stared straight at the audience, chewing something. After a moment, she blew a pink bubble that grew larger and thinner until it finally popped.
An elderly white Western man cheered and shouted while holding a ten-rupee note.
The dancers looked at each other, reluctant to go forward to take it. Finally, one dancer accepted it perfunctorily out of politeness.
This old white man was still immersed in the glory of his former colony and had no idea that he was the most stingy customer in the entire bar.
Didn’t he see that other people had stacks of large rupees on their plates? He thought he could get a girl’s kiss just by his skin color.
Oda twisted his mouth, sneered, and then gestured to the waiter.
Soon a garland woven with rupees was brought onto the stage, and cheers were heard from the crowd.
Mona Lisa finished her dance and walked over to Oda's table. She smiled and said, "Hello!"
"Hello." Oda nodded reservedly.
They started chatting, and Mona Lisa was very enthusiastic, as if she was meeting relatives and friends who had lost contact for many years.
The exotic atmosphere captivated Oda, and in just a few minutes, he explained his origins clearly.
Including why he came to India and what he has been busy with recently.
In order to show off his own abilities, he always acts condescending when commenting on India.
This of course includes Sur Electric, but he was a little more subtle about it.
"Without NEC, Sur would never have been where it is today. Do you know mobile phones? Maybe from now on, Indians will need NEC to make phone calls. They will have to beg me for help!" Oda was complacent.
(End of this chapter)
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