Restrictions on placing 5G orders with Chinese vendors for Indian telcos

With the exception of Reliance Jio, Chinese vendors built the majority of operators' 4G networks

Indian telecom operators will not be permitted to put 5G network orders with Chinese equipment manufacturers Huawei and ZTE According to Financial Express, which cited officials with knowledge of the situation.

However, they can still use their assistance to upgrade the current 4G networks. With the exception of Reliance Jio, Chinese vendors built the majority of operators' 4G networks. In contrast, a recent Financial Express report claims that telcos cannot buy 5G equipment from Chinese manufacturers. Jio and Airtel have already begun to build out 5G in India, but they did so with the aid of European suppliers. No Chinese companies have any role in that but it must be noted that Vodafone Idea, that is still to begin rolling out it's 5G services in the country was reported to be in advanced talks with Chinese vendors for its 5G network.

The government also recently gave it's approval for a network upgrade contract worth Rs 200 crore between Vodafone Idea and ZTE, whereby the Chinese manufacturer of the technology will provide optical transmission gear for the telecom operator's ongoing network upgrades in a few specific regions.

If a telecom company wants to upgrade their network with equipment from vendors who are not recognised as reliable sources, they must first get permission from the National Security Council Secretariat (NSCS).

Due to security concerns, the Indian government has already stated earlier that it does not want any Chinese vendors to be involved in the development of the next generation of telecom networks.

Not just that, according to the report, the ban on Chinese businesses aims to help domestic gear manufacturers become a competitive option in this market. The 4G and 5G stack created by the consortium led by TCS, for instance, would be implemented by state-run telco Bharat Sanchar Nigam Limited (BSNL).