Nokia, Ericsson and Cisco are some of the major manufacturers and suppliers of telecommunications equipment in the world. Their presence in India is also quite strong now that Chinese companies including Huawei and ZTE have been barred from helping telecom operators with their equipment needs. The differences between India and China still exist, due to which the Government of India (GoI) has decided to continue not including Chinese companies in the telecom sector in India.
Telecom equipment suppliers want government to allow sourcing of equipment and components from China
According to a Financial Express report, Nokia, Ericsson and Cisco have requested assistance from the GoI to enable them to bring in their equipment and components from China. It should be noted that all of these companies have manufacturing bases in China as well as in Europe, India and the United States.
As the demand for telecom equipment is increasing with the deployment of 5G nearby, network equipment vendors are looking for government assistance to bring their products from Chinese land to India.
In addition, these companies have requested a delay of 6 to 9 months from the Indian government to relocate their base from China to India.
India’s 5G rollout could be significantly slowed if these vendors are not allowed to bring in their equipment from China. In addition, a new mandate will come into effect on July 1, 2022, which will require equipment imported from outside to be tested first in selected laboratories for its safety before being approved for use by telecommunications operators.
It could also lead to supply issues and slow down the rollout of 5G in India. Industry leaders want the government to postpone that decision until at least January 1, 2023. This will give affected labs ample time to prepare and accelerate their learning curve to ensure there are no huge delays in product testing. For the first time, these labs will have to verify large-scale products, including radios, routers, switches, and more.