'Buy from trusted sources only': Ahead of 5G rollout, Centre bars Chinese telecom equipment

NEW DELHI: In a big blow to Chinese telecom equipment manufacturers ahead of the 5G rollout, the Centre on Monday mandated telecom companies to source devices only from ‘trusted sources’ for expansion or upgradation of existing networks.

The Department of Telecommunications (DoT) issued a notification to this effect on Monday, tightening the rules for telecom licences.

The move is aimed at preventing Chinese vendors such as Huawei and ZTE from providing telecom gear to Indian telecom operators for the upcoming 5G services. 

“With effect from 15th June 2021, the licensee shall only connect trusted products in its network and also seek permission from designated authority for upgradation or expansion of existing Network utilizing the telecommunication equipment not designated as trusted products,” reads the DoT notification. 

The government clarified that these directions will not affect ongoing annual maintenance contracts or software updates to existing equipment. In 2021, the DoT had made the changes to the telecom licensing norms and included ‘defence’ and ‘national security’ as parameters for the purchase of trusted telecom products. Following this, the designated authority can ask telecom companies not to use products deemed unsafe. In the latest notification, the DoT added the word ‘expansion’ to the licence conditions.

Chinese tech giants Huawei and ZTE are yet to complete paperwork to seek ‘trusted sources’ approval. Several countries, including the US, UK and Sweden have blocked operators from using equipment made by Huawei over security concerns. Countries such as Canada accused Huawei of spying for the Chinese government. 

“We have found that these Chinese telecom gears are not safe at all. It is dangerous to use these devices,” said an official with the telecom ministry.