By Thomas K. Thomas
April 28, 2010
The Government has officially told mobile operators not to import any
equipment manufactured by Chinese vendors, including Huawei and ZTE.
Though the Department of Telecom had been informally telling the
operators to keep away from Chinese telecom equipment, this is the first
time that it has sent an order banning Chinese gear.
The order was sent out by the DoT on Tuesday to some of the operators
that were planning to buy equipment from Chinese manufacturers. The ban
order follows concerns raised by the Home Ministry that telecom
equipment from some countries could have spyware or malware that gives
intelligence agencies across the border access to telecom networks in
The Government had earlier banned import of Chinese handsets without
IMEI number. The DoT move is a huge blow to ZTE and Huawei that are
betting big on the Indian market. ZTE had a record-breaking performance
in the last fiscal in India by registering a 50 per cent increase in
sales compared with the previous year. The ban also puts the new mobile
operators in a quandary as most were banking on attractive financing
schemes by Chinese vendors to purchase network equipment.
The biggest gainers from the move could be European and American vendors
that have been losing market share to aggressive Chinese
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