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Telcos in 4G spectrum bid need not place contracts with Chinese firms like Huawei, ZTE

The government may impose restrictions on private telecom operators to buy equipment from Chinese firms for projects in which they acquire public assets on a lease basis.

India TV Business Desk India TV Business Desk
New Delhi Updated on: July 27, 2020 11:44 IST
BhartiAirtel, Airtel, 4G spectrum, Chinese firms Huawei, ZTE, Nokia, Ericsson
Image Source : FILE PHOTO

Telcos in 4G spectrum bid may be restricted from placing contracts with Chinese firms like Huawei, ZTE

The government may impose restrictions on private telecom operators to buy equipment from Chinese firms for projects in which they acquire public assets on a lease basis. The government which may auction 4G spectrum for some bands, may impose restrictions on private bidders whosoever win the contract won't be able to purchase the equipment from Chinese companies including Huawei and ZTE.

The government is planning to restrict companies those seeking to participate in the 4G auction for certain bands that they won't be able to procure equipment from nations that share a common border with India, especially firms in China. Similar restrictions will be imposed on private players whenever 5G auction takes place in the country.

As the government may impose restrictions on private companies, telecom operators BhartiAirtel is considering not renewing its contract with Huawei for managing its 4G network in Tamil Nadu circle, a Financial Express report said.

Quick Recap

  • Telcos bidding for 4G spectrum may have to drop Chinese firms for buying equipment
  • BhartiAirtel might not renew the contract with Huawei, ZTE
  • Previously, the government changed trade rules imposing restrictions on public procurement from China, other countries with the common border

Meanwhile, BhartiAirtel is planning not to award contracts for managing its network to Chinese companies but to European companies like Nokia and Ericsson.

Earlier on July 24, as border tension with China continues, the government changed trade rules imposing restrictions on public procurement from China and other countries with the common border. According to the changed rules, the government imposed restrictions on firms, companies from countries which share common land border after it amended the General Financial Rules 2017.

An official statement on Modi government latest move said that this has been done on the grounds of defence of India, or matters directly or indirectly related thereto including national security. The Department of Expenditure has, under the said Rules, issued a detailed order on public procurement to strengthen the defence of India and national security, it said.

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