- The government of India will bar Chinese companies from sourcing telecom gear to telcos
- The government has also cancelled a tender floated by BSNL earlier this year
The aftermath of clashes between Indian and Chinese armies might leave Chinese telecom gear makers dry from orders of Indian telcos. A report published by the Economic Times states that the government will soon ban Huawei and ZTE from supplying telecom gear to BSNL. The move may also be extended and applied to private telcos in the country.
This move of barring the two comes at a time when almost every telco is gearing up to deploy 5G networks in India. The value of telecom equipment industry in India is around Rs 12,000 crores. While the industry comprises of likes of Ericsson, Nokia and Samsung, China-based players account for a fourth of the same.
It is to be noted here that the Prime Minister of India, had recently said the country would retaliate if instigated by China. The tensions between the defense forces of these two countries seem to be rising at the Galwan region.
A policy of promoting domestic manufacturing of telecom equipment in India is under works as well. Once rolled out it might encourage global players like Nokia and Ericsson to make in India.
Many countries have already kept Huawei out of 5G contracts
Starting with the US, many other countries have followed suite to bar Huawei from supplying 5G telecom gear to telcos. The list of these countries includes Australia, Japan, New Zealand and Taiwan. Countries including Russia, UK, South Korea and the Netherlands have allowed Huawei to supply 5G telecom gear.
The United States has recently imposed new restrictions on exports made by companies located in the country to China. The same, as per a report by Reuters, is being done to keep semiconductor equipment and other technology away from China’s military.
USA, back in 2019, had first announced restrictions on China-headquartered Huawei. The relations between the two countries have been deteriorating.
The new set of restrictions will require US companies to obtain licenses in order to be able to sale certain equipment and technology to China-headquartered companies that support the Chinese Military. Reuters reported that these restrictions might cause a decline in the business of semiconductor industry as well as sales of components to China.