According to reports, Chinese suppliers Huawei and ZTE will be excluded from India’s 5g network construction plan.
People familiar with the matter said that India will implement the investment rules revised on July 23, which restrict and exclude bidders from neighboring countries on the grounds of national security issues.
India’s Ministry of communications will restart discussions on approving private companies to conduct 5g tests, including Bharti Airtel, reliance Jiao Infocomm and Vodafone idea, which delayed the tests due to the nationwide blockade imposed by the epidemic, they said,
India tries to dissuade wireless operators from buying Chinese equipment
India’s decision is in line with the actions of the United States, Britain and Australia. The Federal Communications Commission has listed Huawei and ZTE as national security threats.
Indian government officials said the 5g auction could be delayed until next year. They said the decision on the ban is expected to be announced within a week or two after approval by the prime minister’s office.
Spokesmen for India’s Ministry of communications and prime minister’s office did not immediately respond to requests for comment. Huawei and ZTE also did not respond to emails seeking comment.
Disable China app
Although India announced earlier this year that it would allow Huawei to participate in its 5g test, in June this year, after the border conflict between China and India, India banned dozens of Chinese apps, including tiktok, on the ground of threatening its sovereignty and security.
“Telecommunications infrastructure has become part of national security assets, and countries are considering controlling and regulating it, just like electricity and water,” said Nikhil batra, an analyst at International Data Corp in Sydney. But the Indian market is already dealing with infrastructure and regulatory issues. The market for network devices is small. So this decision will intensify the challenges facing India. “
According to IDC estimates, Indian Telecom is expected to invest $4 billion to build 5g infrastructure.
This can be difficult because companies including Battier Telecom, Vodafone idea and even their state-owned telecom companies are trying to make the existing 4G network profitable. India’s 4G network relies heavily on Chinese equipment. Rajiv Sharma, head of research at sbicap securities, said that banning Huawei and ZTE could increase the cost of upgrading to 5g by up to 35%.
After Indian billionaire Mukesh Ambani announced on July 15 that it would soon launch 5g network for its Ji Infocomm using its internally developed technology, reliance industry may become a severe challenge faced by Huawei in India, the world’s second largest wireless market.
Reliance has said that unlike some of its competitors, Jiao Infocomm can switch to the new system without spending too much money, which will protect it from political disputes involving global telecom companies in relation to Chinese equipment suppliers.
However, as COVID-19 intensifies, India’s economy is heading for a “deep recession”. The government may not be able to promote the 5G spectrum auction in the near future.
Editor in charge: PJ