The Department of Telecommunications (DoT) has introduced the clause of sourcing gear or equipment for the Internet Service Providers (ISPs) from trusted companies only. According to an ET Telecom report, government-run companies such as Power Grid, Oil India, GAIL, RailTel, and more can only accept equipment that is on the ‘trusted’ list of the centre. The new direct shall be applicable from June 15, 2021. It is worth noting that a similar clause has been introduced for telecom companies as well.
ISPs to Take Permission from NCC Before Purchasing ‘ Non-Trusted’ Equipment
According to the amendments introduced by the government, any of the ISPs looking to purchase equipment or gear from a non-trusted company will have to first take permission from the National Cybersecurity Coordinator (NCC), a body designated by the government to take decisions on the concerned matter.
At the same time, if the ISPs are under a contract with any of the ‘non-trusted' companies, which will end at a date after June 15, 2021, it can continue without any restrictions. But the power to form new contracts with ‘non-trusted’ companies will be removed from the hands of the ISP's post June 15, 2021.
The government has given identical orders to the telecom companies as well. All the telcos must comply with the rules and will have to communicate their decisions on the matter with the same government body, NCC.
Since the time border-tensions between India and China have started growing, the government has made it hard for the Chinese companies to operate within India and banned several Chinese applications.
The capital has also been asking telcos and state-run companies to avoid new contracts with the Chinese companies. This will ensure that none of the Chinese firms has any part in the 5G networks of India.
Because of this, Huawei and ZTE have lost multiple contracts and meaningful business in India.