Reliance Jio gets approval to buy 5G gear from 'trusted' vendors

Telecom major Reliance Jio has received approval enabling it to use equipment from various vendors, including Ericsson, Nokia Networks, Cisco, and Dell, which have been endorsed as a ‘trusted source’ by the National Security Council Secretariat.

The move will pave the way for telecom companies to take the next steps in ordering specific equipment, particularly for the upcoming 5G roll-out from these vendors. 

The National Security Directive for Telecom has made it mandatory  for  all OEM players as well as for their equipment  to get a  ‘trusted’ tag  before they can be bought by telecom firms. In the first level, the OEM  needs to be endorsed as a ‘trusted source’. In the second level of clearance, this equipment too will need to receive its own certification as a ‘trusted product’ in order for telecom firms to buy it from vendors.  

However, Reliance Jio is still waiting for permission to use Samsung as a ‘trusted source’ as its application is under consideration.

Samsung provided the 4G network for Jio and is also doing trial runs for 5G for the company in some cities. But Reliance Jio has also developed its own 5G network and technology, which is being tested. 

A Reliance Jio spokesperson declined to comment on the issue. A Samsung spokesperson did not respond to a query. Ericsson, Nokia and CISCO also did not comment.     

When it comes to Chinese telecom gear maker Huawei Technologies, the government has asked for more documents. Sources say that its application is still in the process of being filed. 

Without the ‘trusted source’ tag, Huawei will not be able to sell any telecom equipment for 5G. 

Experts say the requirement has been put in as a way of restricting Chinese telecom equipment manufacturers without going so far as an open ban, as some countries have done.

The National Security Committee of Telecom, headed by the deputy national security advisor, decides on who qualifies for the certification.

The move came after the US prodded its global allies to stop buying Chinese telecom gear because such equipment is allegedly used for spying, a charge which Huawei has denied. Countries like the UK, Japan, and Australia have placed severe restrictions on Chinese telecom gear.

As a result, Indian OEMs have to divulge a lot of detail, which includes information on the product, the organisation, its top 10 shareholders up to three levels, the country of origin, and whether there has been any change of ownership.

On equipment, details on active components, their makers, the location of their global headquarters, and even the country where the intellectual property rights reside, also have to be provided.

In the case of software, the global headquarters of the owner and the  sub-contractors and the country where the software will be upgraded, also need to be supplied.