ZTE gets Centre's nod to help Vodafone Idea update its network: Report

Centre has allowed ZTE, a Chinese telecom gear maker, to provide optical transmission equipment worth Rs 200 crore to Vodafone Idea (Vi) for the updation of its network, The Economic Times (ET) reported on Friday. ZTE and Huawei have also applied to the National Security Council Secretariat to become a "trusted source".

The "trusted source" tag is required for a company to be eligible to get fresh telecom network equipment contracts. The upgradation of Vi's network will take place in three circles, namely Gujarat, Maharashtra and Madhya Pradesh-Chhattisgarh. The equipment in these circles is originally provided by Huawei.

"Since it's an upgradation of the existing network, Vi was eligible for exemption. They have informed us about the deal and clarified some questions," an official was quoted as saying in the report.

The two Chinese companies have been struggling to get the "trusted source" tag for a while now. They had applied for the tag long back, but even the companies that applied for it later got it first. These include firms like Nokia and Ericsson.

Also Read: Ericsson, Nokia not ready to supply 5G equipment to Vi on credit: Report

The tag is provided to the company after over ten ministries do the due diligence to ensure there is no security threat. This includes the home ministry, external affairs ministry and IT ministry.

The ET report also said that the Vi-ZTE deal could be the biggest for the Chinese company since the 2022 clashes between the Indian and the Chinese armed forces in Galwan Valley. Neither ZTE nor Huawei was pursuing the tag as the tensions between the two countries grew intense with time.

However, these companies continued to get small ticket contracts. Also, they have been doing maintenance work for Bharti Airtel and Vi's 4G network.