India has told two state-run telecom 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 Chinese forces this week killed 20 Indian soldiers in a Himalayan border dispute.
The instruction is aimed at Chinese telecom gear makers Huawei Technologies Co (華為) and ZTE Inc (中興), the source said, after India last year announced an almost US$8 billion plan, some of which was earmarked for network upgrades, to help loss-making operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).
Photo: Reuters
“Since that plan will be funded by public money they [BSNL and MTNL] should try to ensure they buy made-in-India equipment,” said the government source, who declined to be named as the order was not public.
The Indian Department of Telecommunications did not respond to a request for comment. The head of BSNL and MTNL did not answer calls or messages seeking comment.
Huawei declined to comment and ZTE, which potentially risks losing tens of millions of dollars in orders, did not respond to a request for comment. The Chinese embassy in Delhi also did not immediately respond to a request for comment.
Chinese companies face a public backlash after the worst clash since 1967 between China and India, where anti-Chinese sentiment is already strong.
Beijing has also come under fire over the coronavirus outbreak, with social media campaigns urging Indians to boycott Chinese goods.
The effective ban on the use of Chinese network gear could extend to private telecoms like Bharti Airtel Ltd and Vodafone Idea Ltd, 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,” said a telecom industry source, who has worked closely with Chinese telecom equipment makers.
Any ban could increase costs for Indian telecoms, which would have to rely more on European firms like Nokia Oyj and Ericsson AB, as India has limited domestic expertise in telecom equipment manufacturing.
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