Skip to main content

Over-dependence on Chinese Telecom companies like Huawei is detrimental for Indian Telecom sector

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. 

Comments

Post a Comment

Popular posts from this blog

Dr Swamy's three step formula to make India a VishwaGuru again

BJP leader and eminent economist, Dr Subramanian Swamy, invited as a Chief Speaker at a recent webinar of TiE on "Making India Succeed", spoke at length on India's existing challenges and viable solutions to address these challenges. However, Dr Swamy categorically focused on three major areas, which will help to improve India's world status and restore the country's past glory.  These are explained below: Improve the state of Economy Abolish income tax to boost consumption and savings among households. Bring down interest rates on business loans up to the level of 6% p.a for MSMEs. Increase interest rate on FDs to 9% per annum to facilitate higher savings from households.  Build roads to connect all villages with nearby towns. This will improve connectivity, reduce unemployment, increase purchasing power and spur demand. Social Revolution Indians must start believing in themselves as belonging to the same ancestral tree and identify themselves as prod
7 comments
Read more

Pushpendra Kulshrestha - A Congi Mole within BJP?

Lets say that I am a nobody to comment on Pushpendra Kulshrestha (PK), in the same manner, PK has ZERO credibility (he is nobody) to comment on Dr Swamy. PK's track record suggests that he is fair weather friend of current government. PK could very well be a Congi mole disguised as a Hindutva speaker.  And I am truly flabbergasted to see the responses of Hindus. Apart from making videos and giving speeches on Public events, what is PK's contribution towards Hindutva?  Yes we do need warriors to speak in favor of Hindutva, however, it doesn't mean that we will accept anyone or everyone. Unfortunately, now days its like a popularity contest because anyone who speaks at a superficial level manages to get MAX eyeballs.  Due to emergence of these fake warriors, people have lost sight of the real on ground fighters. Just because a public speaker comes across as a Hindutva well-wisher, he may not necessarily be a genuine well-wisher.  However, these speakers, for their
3 comments
Read more

Withdraw minority specific reservations at Minority institutions, funded by tax payers money, to bring parity in education system

Minority institutions across India receive grants from government and channelize a large percentage of these funds for the welfare and benefits of minorities such as Christians, Muslims, Jains, Parasis etc. Such inconsistencies rip-off the right of hard-working and meritorious hindu students to receive benefits of better education from these institutes. Despite having a meritorious record, majority Hindu students are left out from these educational institutions only because of their religious background.  With 50% of the seats reserved for minorities, general category Hindu students have to fight for remaining seats. This is the prevalent trend among so called prestigious minority colleges such as St Stephens, St Xaviers, Jesus & Mary College, Loyola College etc. In a recent tweet, Dr Swamy highlighted St Stephens case to prove the disparities in the system. The tweet calls for a re-look at the existing education system with the purpose of introducing further reforms. 
5 comments
Read more