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Seeking fair share of India market
Source: Xinhua |
May 10, 2010, Monday
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CHINESE telecom companies operating in India tell Xinhua there is no justification for that country's security concerns about their equipment and say the current de facto restrictions suggest commercial fears.
During the past five months, purchasing contracts for Chinese telecom equipment from major Indian operators have been turned down by the Indian Department of Telecom (DoT), citing security concerns alleged by the Indian Ministry of Home Affairs.
And the purchase of Western companies' equipment in the same contracts had all been cleared. Even though DoT said there was no ban on Chinese equipment, the rejections suggest a de facto security ban is in place.
Chinese telecom majors Huawei and ZTE said they had no new purchase contracts for the first four months of 2010 due to the security check. They never had any formal documents from the Indian government informing them of the issue and only learned about it from Indian telecom operators.
They told Xinhua the so-called "security concerns" were unjustified for at least three reasons:
First, Chinese telecom companies were using the same technical standards as Western telecom companies. Therefore, the fundamental structures of the equipment were the same.
Second, Chinese telecom equipment had passed technical tests of telecom companies in Britain, Germany and France, where the checks were stricter, and had been serving telecom markets globally. The equipment provided for the Indian market was the same as that provided to Western markets.
Third, Chinese telecom equipment had been used widely in India's wireless networks for the past five years and demonstrated no security problems.
Sources in the telecom industry said India does not have a clear guidance for how to proceed with security checks. It might take two years to establish that capability.
Chinese companies complained the security clearance was a de facto discrimination. They said Indian telecom operators were asked to hand in separately the applications for Chinese equipment and other equipment.
"The so-called security concerns are only excuses," said an industry spokesperson. "The restriction period coincides with the time India auctions its 3G spectrum."
The auction, which has been delayed from February, will end in May this year and will be followed by the first batch of 3G equipment purchases from the operators with 3G licenses. The first purchase will define the market shares for at least the next three years.
In a market as large as India's, the competition among major telecom equipment suppliers is fierce.
Without a security clearance, the Chinese companies, which offer 30 percent cheaper equipment and faster service than their Western competitors, will be left out of the 3G purchase. The big Western providers will be the biggest winners.
The 10,000 Indian jobs created by investment by Chinese telecom companies will be at stake. It will further downgrade the image of Indian investment environment.
During the past five months, purchasing contracts for Chinese telecom equipment from major Indian operators have been turned down by the Indian Department of Telecom (DoT), citing security concerns alleged by the Indian Ministry of Home Affairs.
And the purchase of Western companies' equipment in the same contracts had all been cleared. Even though DoT said there was no ban on Chinese equipment, the rejections suggest a de facto security ban is in place.
Chinese telecom majors Huawei and ZTE said they had no new purchase contracts for the first four months of 2010 due to the security check. They never had any formal documents from the Indian government informing them of the issue and only learned about it from Indian telecom operators.
They told Xinhua the so-called "security concerns" were unjustified for at least three reasons:
First, Chinese telecom companies were using the same technical standards as Western telecom companies. Therefore, the fundamental structures of the equipment were the same.
Second, Chinese telecom equipment had passed technical tests of telecom companies in Britain, Germany and France, where the checks were stricter, and had been serving telecom markets globally. The equipment provided for the Indian market was the same as that provided to Western markets.
Third, Chinese telecom equipment had been used widely in India's wireless networks for the past five years and demonstrated no security problems.
Sources in the telecom industry said India does not have a clear guidance for how to proceed with security checks. It might take two years to establish that capability.
Chinese companies complained the security clearance was a de facto discrimination. They said Indian telecom operators were asked to hand in separately the applications for Chinese equipment and other equipment.
"The so-called security concerns are only excuses," said an industry spokesperson. "The restriction period coincides with the time India auctions its 3G spectrum."
The auction, which has been delayed from February, will end in May this year and will be followed by the first batch of 3G equipment purchases from the operators with 3G licenses. The first purchase will define the market shares for at least the next three years.
In a market as large as India's, the competition among major telecom equipment suppliers is fierce.
Without a security clearance, the Chinese companies, which offer 30 percent cheaper equipment and faster service than their Western competitors, will be left out of the 3G purchase. The big Western providers will be the biggest winners.
The 10,000 Indian jobs created by investment by Chinese telecom companies will be at stake. It will further downgrade the image of Indian investment environment.
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