India may ban Chinese company Huawei after changes in telecom license rules
The Indian government may impose a ban on the Chinese company Huawei after changes in the telecom license rules. This decision can be taken after the new system comes into force from 15 June. Two telecom department officials said that the government may also release the list of blacklisted companies.
List of blacklisted companies will be released due to security reasons
According to officials, the government is preparing to completely ban the purchase and use of Huawei telecom equipment. Many countries around the world, including the US, Canada, have banned Huawei. In such a situation, India can also take this step to increase security and provide more opportunities to domestic manufacturers.
The government on Wednesday changed the telecom license rules, under which mobile service provider companies will now be able to purchase equipment only with the permission of the government. Another Chinese company, ZTE Corp, may also be banned. It has a small presence in India, but both these companies have been accused of spying for the Chinese government.
Cost may increase after ban
Bharti Airtel and Voda-Idea, which provide telecom services in India, currently use Huawei devices. Analysts say a ban on equipment from these companies will also increase costs.
The equipment and network maintenance costs of Chinese companies are less than those of European companies Ericsson and Nokia. “We are in the process of approving some Chinese investment proposals, but will not give any approval in the telecom and finance sectors,” the official said.
