Tuesday, September 14, 2010
Reservations about allowing the use of Chinese telecom equipment in the Indian market, prompted by security concerns, have abated for now.
Indian security agencies have long worried about allowing Chinese telecom equipment to be installed in Indian networks, warning that domestic communications could be monitored via spyware, leading to security breaches.
In recent days, however, China's Huawei has won a major deal while ZTE has reported a 50 percent increase in Indian sales this year. Growing commerce in telecom equipment between the regional rivals has prompted some observers to conclude that a de facto ban on Chinese telecom equipment has been lifted.
Tata Teleservices has signed a deal with Huawei to implement a rapid rollout in five regions, enabling Tata offer customers multimedia voice and data services and other 3G services. The deal includes the installation of thousands of Huawei¡¯s LTE-ready radios.
ZTE meanwhile announced a 50 percent increase in Indian sales compared to last year. It did not provide specific sales figures, but private estimates here suggest ZTE¡¯s annual Indian sales rose to about $1.5 billion.
Telecom gear vendors have met with Indian government officials recently to discuss network security. Many have privately complained about government restrictions. Alcatel-Lucent declined comment, as did Huawei. Even industry analysts here declined to discuss security issues on the record.
Earlier in the year, Huawei executives said they have received no official guidance from the Indian government. ¡°Nevertheless, we have read media reports and are deeply concerned and surprised to know about this development.¡± The Chinese company added that its Indian operation ¡°is currently evaluating and understanding the latest development and seeking clarifications from the concerned authorities.¡±
Both Huawei and ZTE have major R&D facilities here.
The government previously said all equipment vendors must transfer technology to Indian manufacturers within three years of selling equipment or services in India. It also requires inspection of manufacturing centers anywhere in the world. India¡¯s Department of Telecommunications also asked services providers to ensure that their networks are operated and maintained only by Indian engineers.
The security issue is growing in importance as the Indian telecom equipment market grows to about $28.8 billion annually, according to market researcher Voice and Data. Nokia has Indian sales of over $3 billion, followed by Huawei with nearly $2.5 billion in annual sales.
The government is also considering bringing Google under its security umbrella, asking the search giant to submit periodic reports. It also is pressing Research in Motion to set up an Indian data center to monitor encrypted information on its Blackberry handsets. The government also wants to ensure the security of Skype voice-over-IP services.
By: DocMemory
Copyright © 2023 CST, Inc. All Rights Reserved
|
