Huawei and ZTE do not seem to have a very bright future in the Indian telecommunications industry. It is not only the border tensions between India and China, but also the declining reputation of Chinese companies around the world. Thus, it is not only Huawei and ZTE but also other Chinese companies that will be affected.
The Indian government has made it clear that it does not want Chinese technologies on the country’s future telecommunications networks, including 5G. Telecom operators were also indirectly informed that they should not award new contracts to Chinese companies.
Huawei and ZTE have played a key role in the development of 4G
While Reliance Jio has relied on Samsung to develop its 4G networks, other operators have taken help from Huawei and ZTE. The two companies have played a key role in the expansion of the network and the development of 4G in several circles in India.
Bharti Airtel Chairman Sunil Bharti Mittal has even supported Chinese suppliers to deliver proven technologies at cheap rates to Indian companies. Huawei and ZTE have been part of the Indian telecom ecosystem for a long time, even before the arrival of 4G.
But now the two companies, along with other suppliers of telecommunications equipment based in China, do not have a bright future in India. This is due to security concerns and their reduced reputation in international markets.
Telecom operators exclude Huawei, ZTE from 5G trials
The government recently announced that telecom operators would soon start with 5G trials. All the operators chose European suppliers to help with the testing. Chinese companies were required to report what was to be their sure future in India.
It was not only India, but also Europe and the United States (United States) that began to phase out Chinese companies from their ecosystem. The United States has particularly expressed its happiness and satisfaction with the Indian government’s decision to keep Huawei and ZTE out of 5G trials.
New government portal to further ignore Chinese companies
The National Cyber Security Coordination (NCSC) is a government body that has been tasked with compiling a list of trusted companies from which India’s Telecommunications Service Providers (TSPs) can source.
A meeting held a few weeks ago between companies for the same portal did not include any Chinese companies. It further assures us that Chinese companies will not get any contracts in India at least in the short to medium future.
Huawei positive about its future
However, Huawei is quite optimistic about its future in India. One of the company’s top officials recently said that when the time comes, the Indian government will recognize Huawei’s value and include it in its plans to roll out 5G in India.
Given the situation and recent developments, it does not appear that the Indian government is at all interested in including Huawei in its telecommunications networks.