Banning Huawei May Increase Indian Telcos’ Capex On 5G: Fitch

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  • Chinese vendors on telecom are generally cheaper and have better technology on 5G than their European peers
  • Last week, Bharti Airtel’s promoter Sunil Mittal also extended his support to Huawei
  • US Commerce Secretary Wilbur Ross has warned India over using Huawei’s 5G equipment
5G network wireless systems and internet of things with man touching Abstract global with wireless communication network on space background.

According to a recent report by US rating agency Fitch, “If the Indian government does not allow Huawei to build a fifth-generation (5G) network in the country, then Indian telecom operators may have to spend more on 5G infrastructure.”

Support from Sunil Mittal

Interestingly, Bharti Airtel’s promoter Sunil Mittal also extended his support to Chinese telecom equipment major. He said in a statement, “India will take this advice carefully, but the decision will have to be taken politically.”

He further added that he was impressed by Huawei’s products and “without a doubt,” they were “significantly superior” to Huawei’s rivals Ericsson and Nokia.

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Nitin Soni, Fitch Ratings Director (Asia Pacific) told IANS in an interview that they are of the opinion that Indian telcos may need to invest more on 5G Capex –especially on the equipment if Huawei were banned to supply 5G equipment in India.

He added that Chinese vendors on telecom are generally cheaper and have better technology on 5G than their European peers.

Recently, US Commerce Secretary Wilbur Ross has warned India over using Huawei’s 5G equipment. According to Ross, the U.S. hopes that India “does not inadvertently subject itself to untoward security risk” by using 5G equipment from the Chinese tech giant.

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