In the wake of growing tensions with China, Indian telecom sector is grappling with new challenges related to implementation and selection of wireless infrastructure in the country. Historically, India has been dependent on Chinese firms (such as Huawei and ZTE) for the roll out of telecom infrastructure.
However, industry stakeholders are now maintaining caution over Chinese engagement in the possible roll out of 5G technology in the country. Amid Covid-19 crisis, China's global image has taken a severe hit due to its suspicious conduct in hiding the spread of virus.
China's track record of intellectual property rights violations have further aggravated its issues with US. As a result, US & European countries have banned Huawei and ZTE amid growing concerns of espionage and snooping. In February 2014, Huawei and ZTE were also reported to have hacked BSNL network and the matter was discussed in the parliament. An inquiry commission was formed to investigate the matter, however, the report hasn't been submitted till today.
With Chinese manufacturers controlling 75% share of the Indian telecom infrastructure market, the current situation in the telecom sector looks grim. Since Huawei has significant investments in the sector, it desperately wants to be part of 5G auction process. On the contrary, US has banned Huawei in the US market and don't want it to be a part of Indian Telecom market, as this can also facilitate the Chinese manufacturer to gain proxy access to US equipments.
Interestingly, IIT Madras, IIT Hyderabad and IIT Delhi have exhibited their capabilities in 5G technology. While IIT Madras developed an indigenous 5G test bed in 2018, IIT Delhi has set up a 5G lab in collaboration with Ericsson. Unfortunately, the government only allocated ₹250 crore for the development of such a prominent next generation platform.
The government committed a strategic error in ignoring domestic innovations in 5G, which has amplified the existing telecom crisis in India. Moreover, engagement with Chinese manufacturers will adversely impact security of India's wireless infrastructure.
Apart from IIT innovation labs, Reliance JIO claims to have developed 5G solution, which will be available for deployment in 2021. Other players such as Vodafone and Airtel have been dependent on Huawei for their 3G and 4G platforms. With government deciding to keep Huawei out, operating costs of these communication service providers will increase considerably.
In national interest, the government can adopt the following measures to safeguard Telecom infrastructure domain in the absence of Chinese firms:
- Increase government spending on IIT innovation labs in order to facilitate mass adoption.
- Establish a separate PSU or form a new team of engineers under BSNL for 5G rollout.
- Form partnership agreements with other global telecom infra majors such as Samsung, Apple and Ericsson to seek knowledge sharing in 5G rollout.
- Neutralize attempts of 5G monopolization by firms such as Reliance Jio to safeguard consumer interests.
Calls for 'Make in India' or 'Vocal for local' will gain credibility only if government encourages domestic innovation, which later develops capabilities to replace foreign technologies.
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