Offering to abide by India’s new security standards that are opposed by most other global suppliers, Chinese telecom gear vendors are hoping to overpass a trust deficit that has degraded their operations in the country and finally have a share in the $100 billion market in the country.
The rules set by India’s security organization has told that the vendors need to employ only Indian nationals as engineers in the country. Chinese firm ZTE had stated, that they are willing to obey with the recently announced security guidelines here in India. Huawei is also expected to follow in ZTE’s shoes.
This comes at a time when powerful business foyers in the US, Europe and Japan are pressuring India to overturn the new norms, which notably require these vendors to park their software codes and designs in an escrow account in India if they want to do business in the country.
ZTE is working with its Indian telecom service provider partners. Huawei is also keen to cooperate with the Indian security agencies and is expected to sign the dotted line shortly. The Indian government has made operators responsible for ensuring that vendors comply with the security requirements.
According to Tata Teleservices, ZTE had approached the company excepting to sign the agreement. The company has already sent a communication to the telecom department informing them.
The latest offer by the Chinese vendors to obey with India’s new rules could give the Indian government an advantage in its discussions with European and US vendors. It could also dull the lobbying efforts by Western industry associations to overturn the new rules
Around 20 trade groups have in print the same letters to home minister P Chidambaram, telecoms minister A Raja, commerce minister Anand Sharma and the Prime Minister’s Office complaining that the new security norms were not reliable with global practices and that they had not been consulted during its formulation.
The new norms enforce penalties of 100% of the contract value on mobile operators if any spyware or malware is found in their imported equipment.