The Department of Telecommunications (DoT) has sought comprehensive details from all telecom operators regarding the deployment of Chinese-made equipment in their networks, amid rising security concerns and the ongoing US-China tariff war. "The Department of Telecommunications (DoT) has written recently to all telcos to provide details of Chinese equipment in their networks," a source aware of the details told ETTelecom.
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Focus on Legacy Infrastructure and Security Risks
The report also cited multiple sources who said that the move is aimed at assessing the extent of Chinese involvement in India’s telecom infrastructure, particularly legacy networks, to mitigate potential national security risks. The request follows a similar exercise undertaken last year, when the government had sought data on SIM cards with Chinese origins.
Chinese Vendors Barred from New Contracts
While Chinese vendors such as Huawei and ZTE have been excluded from India's 5G rollouts, they continue to support portions of the 4G and 2G infrastructure operated by Bharti Airtel, Vodafone Idea, and state-run Bharat Sanchar Nigam Ltd. (BSNL).
Another industry source estimated that Huawei receives approximately Rs 600 crore annually from Indian operators in maintenance fees, with ZTE accounting for a smaller share, as per the report.
The government has clarified that while servicing and replacement of existing equipment by Chinese vendors is currently allowed, they remain barred from participating in new contracts. The exclusion aligns with India's trusted source policy, implemented in 2021 following border tensions with China.
Under this framework, vendors must be approved by a multi-ministerial panel to be eligible for supplying telecom gear. Huawei and ZTE have not received the trusted source designation, unlike European and Korean companies such as Ericsson, Nokia, and Samsung.
Despite some expert opinion suggesting that the ongoing US-China tariff war could open avenues for stronger India-China trade relations, the government, over the weekend, has reiterated its stance against encouraging foreign direct investment (FDI) from China.
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Financial Constraints Prevent Equipment Overhaul
According to the report, the government has no immediate plans to replace existing Chinese equipment, citing the significant financial burden such a move would place on older telecom operators.
"The share of Chinese firms is coming down…if any equipment needs to be replaced will depend on the details provided by the telcos," an official was quoted as saying, as per the report.
With over 200 million subscribers still on legacy 2G networks and some on soon-to-be-phased-out 3G services, a considerable number of older SIM cards with Chinese components remain in circulation.
The government is also ramping up efforts to enhance network security and achieve self-reliance in telecom technology by developing indigenous 4G and 5G stacks. The broader vision is to position India as a global exporter of telecom equipment, competing with established international players.
