The Government of India (GoI) has made it is clear that telcos can’t source telecom equipment from untrusted sources. Further, a lot of emphases has been put on local manufacturing of the equipment. But there’s friction between the local equipment manufacturers and the definition that the Department of Telecommunications (DoT) has set for what constitutes local equipment.
According to the Telecom Equipment Manufacturers Association of India (TEMA), DoT’s definition of what constitutes local telecom equipment is wrong. TEMA said that DoT’s policy would hurt the Centre’s vision of making a reliable and self-dependent India.
DoT Has Received Several Objections from Local Equipment Manufacturers
According to an IndianExpress report, the DoT has received several complaints and objections from the trade bodies and local equipment manufacturers in the last 10 days over the existing definition of locally sourced products.
Currently, DoT allows the companies to bring components from foreign lands and then assemble/manufacture them into a finished product within India. For DoT, this is a locally sourced product.
But the equipment manufacturers said that this allows even countries like China and others to sell products to India. By simply assembling, India won’t become self-reliant since there’s hardly any effort or money being poured into the Research and Development (R&D) of these products.
Due to this loose definition of locally sourced products, many equipment manufacturers plans’ will be hurt. The Companies which were planning to expand aggressively in India looking at the government’s vision of a self-reliant country will not be as fruitful as expected.
Small companies have spent so much money and time in the R&D of telecom equipment and made them suitable to the recommendation of the Indian TEC standards. But with the definition that DoT has right now, it will leave these companies fighting against multinational giants such as Nokia, Ericsson, and more.