India is evaluating a potential “rip and replace” initiative to remove legacy Chinese telecom equipment from the country’s cellular networks over national security concerns, according to a Moneycontrol report.
The government is currently seeking detailed information from telecom operators on their use of equipment supplied by Chinese vendors, including Huawei and ZTE, as well as the potential cost of replacing that equipment. The exercise is being conducted by the Department of Telecommunications (DoT) on behalf of the Ministry of Home Affairs (MHA), which would ultimately decide whether a replacement program should go ahead.
The immediate focus is on equipment deployed before India made it mandatory for service providers to purchase telecom gear from approved ‘trusted source’ vendors. Chinese vendors have not received the required certification, which has effectively prevented them from participating in India’s 5G market. However, the government allowed the Chinese equipment already installed in the networks to remain.
While Reliance Jio, India’s largest service provider, has not deployed any Chinese gear, other telcos, including Bharti Airtel, Vodafone Idea and state-owned Bharat Sanchar Nigam Limited (BSNL) have historically used Chinese equipment in their networks.
A program to remove Chinese gear from India’s communications networks could involve significant costs. It is as yet not clear whether these would be shouldered by the government or the telcos. The service providers are already struggling to monetize their investments in 5G and they are also investing heavily in deploying fiber and network modernization.
Replacing Chinese equipment would also be a lengthy process. Huawei and ZTE became major suppliers in India because they offered telecom service providers competitively priced equipment and favorable payment terms, helping reduce the cost of network deployment.
India would not be the only country to remove Chinese gear from its mobile network. For instance, the US implemented a “rip and replace” program to remove Huawei and ZTE gear being used by service providers. Several other countries, including the UK, Germany, Denmark and Estonia, banned the use of Chinese telecom gear in 5G networks.
