Vodafone Idea places ₹200 crore network order with Chinese company ZTE
1 min read . Updated: 16 Apr 2023, 12:34 PM IST
Premium- The government provides a list of trusted sources and products that can be used for installation in the country's telecom network.
Vodafone Idea has reportedly placed an order of approximately ₹200 crore with Chinese company ZTE for network gear, according to three sources familiar with the matter.
The order pertains to broadband network equipment in the telecom circles of Gujarat, Maharashtra, and Madhya Pradesh-Chhattisgarh (MP-CG), as informed by the sources to PTI.
"Vodafone Idea has awarded an order of around ₹200 crore to ZTE," one of the sources said.
The National Security Council Secretariat (NSCS), which oversees the Trusted Telecom Portal and grants clearance for permissible telecom equipment, has been informed about the matter, according to the sources.
An email inquiry sent to Vodafone Idea did not receive a response.
According to two sources, the order for network gear has been placed by Vodafone Idea for the Gujarat and MP-CG circles, while one of the sources mentioned that the order also includes the Maharashtra circle.
The National Security Directive on Telecommunication Sector, which was approved by the Cabinet Committee on Security on December 16, 2020, requires service providers to procure equipment from trusted sources.
As per this directive, the government provides a list of trusted sources and products that can be used for installation in the country's telecom network.
The trusted telecom portal is utilized for all activities related to the implementation of the directive, including the determination of trusted sources and products. A committee led by the deputy national security advisor approves the list of trusted sources and products.
It's worth mentioning that the directive does not affect annual maintenance contracts or updates for existing equipment that was already inducted into the network before its implementation.
As a result of this directive, Chinese companies have not been successful in securing orders for 5G telecom gear.
According to an official source, an objection has been raised with the NSCS regarding the award, and the matter will be examined by the council.