Huawei has reportedly sent legal notice to Indian operator Videocon Mobile, threatening to suspend support for its network due to non-payment of bills.

According to sources at India’s Economic Times, Huawei says it is owed more than US$150 million from Videocon, relating to a contract signed in July 2009 to supply gear and support for the start-up 2G operator. “Videocon has not paid 85 percent of the equipment contract,” said the source.

Huawei is Videocon’s network vendor and managed service partner in in Mumbai, Gujarat, Madhya Pradesh, Punjab and Haryana.

A spokesperson for Huawei said the deadline for payment had passed before 2 February, when India’s Supreme Court cancelled 122 regional 2G licences, including Videocon's pan-India licences. Huawei is thought to have sold equipment worth nearly US$1 billion to operators that had their licences cancelled

"Huawei will adhere to international and local laws to realise its overdue payment," said the spokesperson.

In order to put pressure on Videocon, Huawei has reportedly withdrawn services support to its telecom arm, Videocon Telecom. The services include an annual maintenance contract, managed services delivery obligations and supply of spares.

Videocon Mobile has 7.7 million subscribers and has already met 50 percent of its rollout obligation in the circles where it holds bandwidth, according to the report. It has indicated it will re-apply for its cancelled 2G licences in new auctions set to take place next month.