No Chinese Equipment For Network Upgrade: The government has told two state-run telecoms firms to use locally-made rather than Chinese telecom equipment to upgrade their mobile networks to 4G, a senior government source said on Thursday. New Delhi’s move comes amid a backlash against companies from China after the killing this week of 20 Indian soldiers by Chinese forces in a Himalayan border dispute. The instruction is aimed at Chinese telecom gear makers Huawei and ZTE, the source said, after India last year announced an almost $8 billion plan, some of which was earmarked for network upgrades, to help loss-making operators Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL).
“Since that plan will be funded by public money they (BSNL, MTNL) should try to ensure they buy made in India equipment,” the government source, who declined to be named as the order was not public, told Reuters.
The decision by the Telecom ministry could play a major role in the 4G up-gradation purchases by its subsidiaries.
The govt service providers have been asked to change conditions in such a way that Chinese companies aren’t able to participate in the tender process. The companies have been asked to cancel all previous tenders for telecom equipment. Directives will also be issued for private mobile service providers to rule out the use of any existing Chinese equipment, and ban any new purchase.
Meanwhile, the Confederation of All India Traders (CAIT) called for a boycott of Chinese goods, listing 450 imported items including cosmetics, bags, toys, furniture, footwear dn watches. The objective is to reduce the import of Chinese finished goods by $13 billion or about Rs 1 lakh crore by December 2021, CAIT said.
The Swadeshi Jagran Manch today demanded that Chinese companies be banned from participating in the tender process in the country. It also demanded the cancellation of the lowest bid made by China’s Shanghai Tunnel Engineering Co Ltd for the construction of an underground stretch of the Delhi-Meerut Regional Rapid Transit System project.
The effective ban on the use of Chinese network gear could extend to private telcos like Bharti Airtel and Vodafone Idea which also use it in their networks.
“There will probably be some communication… maybe not a cease and desist, but a plea to avoid using Chinese equipment in core networks,” a telecom industry source, who has worked closely with Chinese telecom equipment makers, said.
Any ban could increase costs for Indian telcos, which would have to rely more on European firms like Nokia and Ericsson, as India has limited domestic expertise in telecom equipment manufacturing.
Beijing has also come under fire over the coronavirus outbreak, with social media campaigns urging Indians to boycott Chinese goods.
Earlier on Wednesday, India delivered a strong message to China that the “unprecedented” incident at the Galwan Valley will have a “serious impact” on the bilateral relationship. It also held the “premeditated” action by the Chinese army directly responsible for the violence.
