Govt bans import of Chinese telecom equipment

Govt bans import of Chinese telecom equipment
Govt bans import of Chinese telecom equipment 

By Thomas K. Thomas
New Delhi
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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