The Indian Government had blacklisted Huawei and ZTE earlier this year on Security Concerns.These Firms were said to have close relations with the Chinese Government and Intelligence Agencies had raised a red flag about potential security breaches in critical communication infrastructure.This had led to a lot of to and fro with Telecom Operators and Chinese Government lobbying the Government to allow the Chinese Equipment Vendors.The Indian Government in its typical opaque and convoluted manner kept things meandering.There were reports that the Government would put the onus of security on Telecom Operators and put huge fines in case of Trojans found in the Software.Huawei and ZTE also tried placating the government through various ploys like Chinese employees keeping Indian names.Given the importance of the Indian market Huawei and ZTE are willing to keep the source code in Indian custody while Western Vendors have balked at the move.It remains questionable over why Chinese vendors are willing to give away such valuable IP where Western players remain reluctant.
India got the wheels moving on imports of Chinese infrastructure last week, clearing carriers Reliance and Tata Teleservices to bring in equipment from ZTE and Huawei.The government opened the door after the Chinese vendors agreed to supply codes allowing India’s security forces to access encrypted data sent via their networks, to allay fears the gear could be riddled with malware WSJ.com reports.Negotiators from ZTE and Tata agreed in principal with India’s requirement that network source code be made available to authorities in a ‘sealed envelope’ escrow account, FT.com reported.
Does allowing Huawei make sense given increasing Sino-Indian Tensions
The Indian Government has never been known to play the economic cards to its advantage.India and Chinese relations have come under increasing strains with Indian PM raising concerns about China’s territorial ambitions in South Asia.Despite all the needling,India’s Corporate Lobbies have won out as usual with Tata Teleservices giving the contract for 3G equipment to Huawei with government approval.Huawei has faced a lot of obstacles from US and other countries due to its close PLA links.It was blocked from buying Motorola’s unit as well as 3Com.Note India’s proposal to put duties on import of power equipment from China is also hanging fire.India’s voracious private corporate groups care a fig leaf for India’s Secrutiy in their quest for profits.These Corporates are a Stronger Lobby than the Chinese Government for the Chinese companies.
Tata Teleservices Ltd. (TTSL) on Thursday said Huawei of China would provide its next-generation telecommunications network solutions to help rollout its 3G network in India.
TTSL, which recently acquired 3G spectrum for nine circles, has selected Huawei to implement a robust and rapid rollout in five circles. It will enable the telecom operator to offer superior multi-media voice and data services such as mobile streaming, video calls, mobile internet and other 3G services to its customers, a company statement said.
TTSL has selected Huawei’s 3G technology under the managed services model, which includes the installation of thousands of Huawei’s industry leading, LTE—ready, SingleRAN 4th generation multi standard radios (MSR).