According to foreign media Light Reading, the Indian government has approved the formulation of the National Security Directive to enhance the security of communication networks. The directive will contain a list of trusted telecommunications network suppliers and products, and the government may later develop a list of sources and suppliers that are prohibited from purchasing.
India’s National Cyber Security Coordinator (NCSC) will be responsible for designating a list of “trusted” product sources. The agency will set up a committee with members from industry, independent experts and relevant government departments. This committee will be called the National Security Committee on Telecom.
The directive will take effect in the next 6 months. Existing equipment and annual maintenance contracts (Annual Maintenance Contracts, AMC) can continue to be implemented without any changes.
Close the door
This move may affect Chinese manufacturers Huawei and ZTE. The two companies may find it difficult to find a place on the list, which means that they are unlikely to participate in the future 5G deployment and other telecom infrastructure construction in the Indian market.
Although the Indian government has not directly banned Chinese suppliers, several recent regulations have made it more difficult for Chinese suppliers to conduct business in India.
Due to the skirmish between the soldiers of the two countries on the Sino-Indian border, the Indian government announced several measures to weaken the influence of Chinese products in the Indian market. It bans several Chinese apps and mandates that companies from countries bordering India must obtain approval from the Indian authorities before investing in India. Indian state-owned telecommunications companies are also prohibited from using Chinese equipment, and private telecommunications companies are also required to reduce their use of Chinese equipment. The recently issued National Security Directive is the latest in a series of such initiatives.
Find the answer
Indian telecommunications companies have been trying to clarify the licensing of Chinese equipment. The Indian 4G spectrum auction will be held in March 2021, and the 5G auction will be held later in 2021. Therefore, it is important to determine this.
It is not yet clear whether this new directive will delay the network expansion or upgrade plan. However, it has transferred the responsibility of ensuring equipment safety and not affecting network security to the government.
The absence of Chinese manufacturers may reduce the competitiveness of the Indian market and increase the capital expenditures of telecom companies.
Nokia, Ericsson and Samsung are the most well-known non-Chinese equipment manufacturers still remaining in the Indian market. Bharti Airtel and Vodafone Idea use products from Nokia, Ericsson, Huawei and ZTE, and Jio is the only Samsung customer.
India’s telecommunications industry is extremely bureaucratic, with layers of approvals and procedures often causing delays. This new directive may only add to the pain of the supplier.
