India, the World's 2nd Largest Telecom Market, Also Joins 'Huawei Crackdown'
Unofficial Steps to Phase Out Chinese 5G Equipment
Measures Considering Chinese Government's Backlash
[Asia Economy Reporter Kwon Jae-hee] India has begun the process of gradually phasing out equipment from Chinese companies, including Huawei, in relation to its 5G network.
According to major foreign media on the 24th (local time), the Indian government has unofficially issued guidelines not to use equipment from Chinese companies such as Huawei and ZTE in future technology investments, including 5G networks.
The Indian government has not yet officially banned the use of equipment from Chinese suppliers like Huawei or ZTE. This is analyzed to be due to concerns about backlash from the Chinese government.
A senior executive in the telecommunications industry said, "The government has clearly stated its policy of not allowing Chinese-made equipment."
An official from the Indian Ministry of Communications also said, "The government has already prohibited 5G testing with Chinese companies."
Huawei is considered one of the major equipment suppliers in the Indian telecommunications market, the world's second largest with 850 million users. It has signed significant contracts with Bharti Airtel, Vodafone, and the state-owned BSNL, which are the second largest players in the Indian telecom market.
Reliance Jio, the largest player in the Indian telecom market, does not have Chinese network equipment and has promised to develop 5G equipment in the future.
Bharti Airtel has been the most dependent on Huawei so far. However, considering the rising anti-China sentiment in India due to border disputes with China, it is reportedly taking steps to gradually sever ties with Huawei. As part of these efforts, Bharti Airtel announced a partnership with the US telecom company Verizon in August.
The state-owned telecom company BSNL has also terminated contracts with Chinese vendors.
A senior Indian government official said, "The Indian government will not officially exclude Huawei and other Chinese companies," but added, "Prime Minister Narendra Modi is seriously concerned about Chinese capital investment in sensitive infrastructure."
He continued, "In India, where anti-China sentiment is stronger than ever due to border clashes, the government's stance is to show strong actions rather than strong words."
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Meanwhile, in June, clashes occurred between the Indian and Chinese armies along the Himalayan mountain border shared by the two countries. It is reported that at least 20 Indian soldiers died, which fueled anti-China sentiment within India. This incident triggered the spread of the 'Atmanirbhar Bharat' (Self-Reliant India) campaign, leading to the removal of Chinese equipment and the ban on 59 Chinese applications (apps) including TikTok and WeChat.
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