The Department of Telecommunications (DoT) has yet to send a formal request, or even informally to private telecommunications Bharti Airtel and Vodafone Idea, to avoid utilizing Chinese telecommunications equipment for either of their potential expansion plans, said senior executives from both firms.
Only Bharti Airtel and Vodafone Idea used Chinese equipment among the three major domestic telecoms operators, while Mukesh Ambani-led Reliance Jio Infocomm is using equipment made by South Korea’s Samsung.
DoT talks calling on private telcos not to use Chinese facilities arising after government source last week stated the reworking of their 4G expansion bids by state telcos Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) to rule out the Chinese telecoms vendors. the DoT then declared that the order could also be extended to private telcos.
Chinese telecommunications suppliers account for around 25 % of the total domestic market share, according to industry estimates. While Chinese telecom equipment is used up to 30% by Bharti Airtel for Vodafone Idea, it is 40%.
The executives cited another issue that if the Indian markets are restricted from the use of Chinese telecoms providers such as ZTE and Huawei, the prices of equipment may increase by up to 30% as only European makers such as Ericsson and Nokia would leave the company in the fray.
