The Indian government is tightening the rules on telecom infrastructure to keep the security of the country intact. The Department of Telecommunications (DoT) has said that BSNL must also purchase satcom (satellite communications) equipment by following the same rules as the private telcos or private companies. In fact, not just satcom, be it infrastructure related equipment, the telcos need the approval of the National Cyber Security Coordinator to purchase it.
BSNL anyway makes its mobile network with the help of Indian companies. The government does not want the state-run telecom operators to work with foreign suppliers (Chinese and non-Chinese) to roll out mobile networks. That is why there has been a significant delay in the rollout of 4G.
DoT recently closed a major telecom license loophole
DoT recently closed the loophole around purchasing telecom equipment from untrusted companies. Basically, the decision has been made to ban the Chinese companies and gear manufacturers from the Indian market.
The Indian government has a list of trusted suppliers that the telcos can use to purchase equipment. Any company that is not on the list cannot be a partner for the telcos. Point said the telcos will need approval from the National Cyber Security Coordinator if they want to upgrade or expand the existing network with equipment from the companies not on the trusted list.
This started since the time when tensions between India and China were rising. Satcom (satellite communications) equipment is also included in the clause, as it is ultimately also used to connect people.
In the telecom sector, this has caused major damage to companies such as Huawei and ZTE. Indian telcos have been collaborating with Chinese companies for decades. Only Jio is the private telco who had not worked with any Chinese company. Jio counted on help from South Korean giant Samsung.
