Telecom service providers will only be able to purchase equipment from government-defined ‘reliable sources’.
This follows the amendment in the license conditions for equipment procurement by the Department of Telecommunications on Wednesday.
The move, seen as a step towards the exclusion of Chinese telecommunications equipment manufacturers such as Huawei and ZTE, comes into effect from June 15 and provides service providers with the National Cyber Security Coordinator (NCSC) to upgrade existing access equipment. Permission has to be obtained from Not designated as trusted products.
“Through Government Nominated Authority [the NCSC] According to the government notification, India will have the right to impose conditions for matters relating to the purchase of telecommunications equipment on the basis of defense or directly or indirectly for national security.
It states that from 15 June, the licensee will only add ‘trusted products’ to its network and seek permission from the designated authority to upgrade equipment using the existing network, which is not designated as a ‘trusted product’ .
These instructions state that it will not affect ongoing annual maintenance contracts (AMCs) or update equipment already existing in the network on the date of impact.
The NCSC will notify the categories of equipment for which security requirements related to ‘reliable sources’ are applicable and may also notify the list of specified sources from which no purchase can be made. The process of inclusion in the list of trusted sources will be released by the NCSC.
Reacting to the decision, J. Sagar Associates partner Tony Varghese said the amendment was an expected step in light of the 5G auction. “The restrictions imposed by Press Note 3 on FDI are prompting policy changes in various sectors. The recent incidents allegedly by Chinese hackers have certainly hastened the process, with the government leaning towards a new national strategy to strengthen the country’s security. “
“Telecommunication equipment plays an important role in telecom connectivity and data transfer, which has a direct impact on India’s national security. Therefore, such a policy decision, which certainly affects important market players, clarifies the government’s stance on national security.
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