NEW DELHI (CU)_India is likely to block the use of equipment made by Chinese telecom giant Huawei under procurement rules that are due to come into force in June, Reuters reported.
The move would be in response to security concerns that may arise when awarding new technology business to Chinese firms, and would also to encourage Indian telecom manufacturers to produce more equipment.
India’s Department of Telecommunications said on Wednesday (10 March), that after 15 June, mobile carriers can only buy equipment from “trusted sources” approved by the government, while New Delhi may also create a “no procurement” blacklist, in which, Huawei is likely to be included.
The Department, however, did not comment on Huawei, and is yet to elaborate on the so called “trusted sources” and the procurement blacklist. Nevertheless, a government official, who did not want to be identified by name, told Reuters that ZTE Corp, another Chinese firm, could also be included in the blacklist.
Over the recent past, both Huawei and ZTE have been under scrutiny for allegedly spying for China’s ruling Communist Party, although these companies have denied these allegations.
Meanwhile, analysts note that with some of India’s big telecoms carriers – including Bharti Airtel and Vodafone Idea – using Huawei gear, these restrictions would likely lead to rise in costs, since Chinese equipment and their network maintenance contracts are usually cheaper than their European competitors.
Officials also told Reuters that the Indian government is unlikely to overturn the last year’s ban on more than 100 Chinese mobile apps on account of issues such as compliance and privacy.
Although, the United States continues to campaign to curb Huawei globally, which has already triggered restrictions on the use of its equipment in several countries around the world, however, the issue is a more personal one to India, given its strained relationship with China over their shared border.
The India-China border clash, the first deadly skirmish in 45 years, soured the already fragile relationship between the two countries and “regaining trust would be a long road from here”, one government official told Reuters.
