Indian telecom operators can't place any 5G network management orders with Chinese gear makers ZTE and Huawei. But they can still take their help with upgrading the existing 4G networks. There's a reason for that. The 4G networks of most telcos, except Reliance Jio, have been built by Chinese vendors. But when 5G is concerned, a recent Financial Express report says that telcos can't purchase equipment for 5G from Chinese companies. While Jio and Airtel have already rolled out 5G in India, they have done so with the help of European vendors. There's no involvement of any Chinese company in that.
A while back, the Indian government made it clear that it doesn't want any involvement of Chinese vendors in the future generation of telecom networks owing to security concerns. The restriction on Chinese vendors for 5G networks is not only due to security concerns but also aims to promote domestic telecom equipment players as viable alternatives in this segment. For example, the 4G and 5G stack developed by a consortium led by TCS for state-owned BSNL could be explored by private telcos as well, said the report.
Read More - Jio is a Big Win for Nokia, Ericsson after Chinese Vendors are Out of 5G
Telecom companies are required to seek permission from the National Security Council Secretariat (NSCS) when upgrading their networks using equipment from companies that have not yet been designated as trusted sources. Recently, the government approved Vodafone Idea's network upgrade order worth Rs 200 crore with ZTE, where the Chinese gear maker will supply optical transmission equipment for the telecom operator's existing network upgrades in select circles.
Trusted source norms were introduced under the National Security Directive on the Telecom Sector in December 2020, mandating telecom companies and licensed importers of telecom products to procure equipment from designated countries that do not pose a threat to India's national security.
