Indian telcos blocked from placing 5G orders from Chinese firms: Aim to boost local vendors

India's 5G wave is currently underway. However, Indian telecom companies now face a major obstacle in the adaption of 5G connectivity in the country.

According to official sources, Indian telcos will not be authorised to place 5G equipment orders with Chinese gear makers Huawei and ZTE. However, they will still be able to make orders for their 4G network upgrade with these Chinese firms.

5G Networks in India

As far as 5G networks are concentred, both Bharti Airtel and Reliance Jio have not placed any orders from Chinese companies. While Airtel and Jio have already built their 5G networks in India, they have set it up with equipment purchased from European vendors.

Vodafone is reportedly in advanced discussions with vendors for its 5G network. However, if Vodafone had plans to use equipment from Chinese vendors to roll out their 5G network, those plans will now have to change.

What is the reason for the move?

Telecom companies in India must seek approval from the National Security Council Secretariat (NSCS) for upgrading their network with equipment from vendors that not considered trusted sources.

The Indian government had previously made it clear that it did not want Chinese vendors involved in 5G networks in the country owing to security concerns. Apart from security concerns, the government also wants to promote domestic telecom equipment manufacturer as viable alternatives.

The report by the Financial Express notes, "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."

Can Indian Telcos use 4G equipment from Chinese firms?

On the other hand, telecoms will still be able to make 4G network upgrades using equipment from Chines firms. This is because, apart from Reliance Jio, other telcos with 4G networks use equipment from Chinese firms.

Vodafone recently placed an order worth two hundred crore with ZTE to supply optical transmission equipment for its existing network upgrades in select circles. However, a government official said, "The approval has been given after analysing the requirement. We have received application from Huawei and ZTE for trusted source tag."