Ahead of the much-anticipated auction of the 5G airwaves, the Department of Telecommunications (DoT), has modified the unified access services licence (UASL) agreement for the purchase of telecom equipment, thereby adding the word “expansion” to the fine text as part of the revision.
The DoT has instructed the telcos to obtain authorization before updating or extending the current network using goods that are not identified as ‘trusted.’
The move is aimed at closing a loophole exploited by telcos to enlist Chinese telecom equipment makers like Huawei, ZTE and others as gear partners.
“With effect from 15th June 2021, the licensee shall only connect trusted products in its network, and also seek permission from designated authority for upgradation or expansion of existing network utilising the telecommunication equipment not designated as trusted products,” the DoT stated.
It, however, said that these changes are not going to affect ongoing AMCs (annual maintenance contracts) or updates to equipment already induced in the network as of the date of effect.
The modification was made after reports emerged that many businesses were allegedly allocating contracts to the two Chinese players under the pretence of ‘expansion of network’.
Prior to this, the Centre had required telecom vendors to display the “trusted source” label. While many European and US-based companies including Cisco, Dell, HP, as well as Tata-owned Tejas Networks got approval in November 2021, the Chinese giants Huawei and ZTE have yet not completed the documentation for being designated as ‘trusted source’.
The change is likely to increase pressure on Chinese telecom companies, barring them from competing to supply Indian telcos with next-generation 5G telecom networks. The government is concerned about Chinese companies controlling the majority of India’s cellular networks.
While services from Chinese companies like Huawei and ZTE are inexpensive and simple to obtain, worries persist regarding an incident in 2014 in which the former is accused of hacking the network of the government-owned telecom service provider Bharat Sanchar Nigam Limited (BSNL).
Both Huawei and ZTE have also been under the lens globally for alleged “backdoor” vulnerabilities to spy for the Chinese government.
This comes at a time when Chinese mobile phone giants like Oppo, Vivo and Xiaomi are being investigated for tax fraud and violations of the Foreign Exchange Management Act (FEMA).
Also Read | DoT Officials Visit Pusa Institute for 5G Lab Exploration with Agriculture Ministry
This intensifies the protracted conflict between Chinese tech firms and Indian authorities ever since the Galwan valley clash between Indian and Chinese troops a couple of years ago. Citing national security, India has also banned more than 320 mobile apps in the past two years that originated in China or had some relation to China.
In view of the border-related issues, the Centre’s policy in terms of telecom is highly-valued by the central security and intelligence agencies as they await the same. The most recent action by the DoT comes as the nation gets ready for the impending 5G auctions, which are set for later this month. The government will construct more than 72 GHz of spectrum for auction.