5G: Chinese companies are kept out of the telecom equipment industry by India

In a major setback for Chinese telecom equipment producers, the Indian government on Monday instructed telecom companies to limit their network upgrades and expansions to purchases from ‘trusted sources.’ The Department of Telecommunications issued a statement on Monday strengthening the guidelines for telecom licences (DoT). The purpose of the measure is to prevent Chinese vendors from providing Indian telecom providers with equipment for the upcoming 5G services, including Huawei and ZTE.

‘With effect from 15th June 2021, the licensee shall only connect trusted products in its network and also seek permission from designated authority for upgradation or expansion of existing Network utilizing the telecommunication equipment not designated as trusted products,’ reads the DoT notification.

However, ‘These directions will not affect ongoing annual maintenance contracts or updates to existing equipment already inducted into the network as on the date of effect,’ it added.

‘Designated authority may also notify a list of designated sources from whom no procurement can be done. Procedure for inclusion of telecommunication equipment in the list of trusted sources will be issued,’ the notice added.

The ‘designated authority’ is in charge of informing reliable equipment as well as the equipment types to which the security regulations relating to reliable sources apply. This person is called the National Cyber Security Coordinator.

These regulations won’t affect ongoing annual maintenance contracts or software upgrades for already-owned equipment, the government made clear. In 2021, the DoT changed the specifications for telecom licences and added ‘national security’ and ‘defence’ as prerequisites for the purchase of trustworthy communication equipment. The designated authorities may then demand that telecom companies stop using any items they consider to be hazardous. In the most recent notification from the DoT, the word ‘expansion’ was added to the licence conditions.

Chinese tech behemoths ZTE and Huawei have not yet completed the paperwork required to get authorization from ‘trusted sources.’ Many countries, including the US, the UK, and Sweden, have banned operators from using equipment made by Huawei because of security concerns. Nations like Canada have accused Huawei of spying for the Chinese government.