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BPL Cell makes $23 million counter claim on Motorola

Baburajan K

BPL Cellular has made a counter claim on telecom giant Motorola for an amount in excess of $23 million for delay in supply of mobile equipment. BPL has also claimed that some equipment supplied by Motorola was of inferior quality.

In response to Motorola's winding up notice served on BPL Cellular two-three weeks ago, BPL has strongly contested the charges.

F B Cardoso, BPL Cellular executive director and CEO said: "We have observed some delay in getting equipment from Motorola. In this connection, we served a letter to the Motorola management in India. We have not yet got any response from them."

"The exact amount claimed by us cannot be disclosed for the time being. But it is more than the amount claimed by Motorola. The winding up notice will not help them stop their services to us," Cardoso said in Bombay on Wednesday.

According to Cordoso, both the companies have not approached the courts to settle the issue. Though BPL officials are planning to reach an amicable settlement with Motorola, the counter claim by BPL Cellular is likely to create a negative impact on the relationship between the two companies, industry observers said.

Earlier, sources in Motorola had said both the companies were trying to avoid further confusion in the matter. As BPL Communications, the holding firm of BPL Cellular and BPL Mobile, has merged with the Birla-Tata-AT&T combine, Motorola is also planning to take up the issue with the merged entity.

The telecom giant is reported to have threatened to take legal action against BPL Cellular. Motorola had supplied cellular equipment for networking in cellular circles such as Kerala and Maharashtra.

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