Security clearance delay for equipment hits telecom gear makers

Without such certification, telcos cannot give product orders to vendors

Telecom gear makers are not getting fresh orders from telcos because the government is yet to clear their applications for equipment which have to certified  “trusted source” and “trusted product” as part of the new rules of security for telecom products.
 
 Without such certification, operators cannot give firm orders to vendors (they do not know whether it will be a “trusted category” and ready for use or not) and the telecom gear maker can neither import nor manufacture the equipment, which in any case will require many weeks’ lead time. This move, they say, could jeopardise their plans in the country.
 
The government launched the “Trusted Telecom Portal” on June 15 and telecom gear makers said they had given the details required on the sources and origins of the products. But nearly 10 weeks are about to elapse  and there has been no response. Telecom gear makers have already approached the Department of Telecommunications (DoT) and have asked telcos on whose behalf they are taking the security clearance in pushing the government.
 
“We see a loss of more than six months for the equipment to be made available to telcos. This will only delay the digitisation process of the country. It is a complete reversal of ease of doing business,” said a senior executive of a global telecom gear maker.
 
Companies like Huawei have put in applications and are in the process of asking for clearance for some of their 5G equipment, according to sources. Huawei, however, declined to comment on the issue.
 
The company’s position is that the rules do not stop it from participating in the telecom gear market in the country, say sources.

Other telecom gear makers also applied for clearance of 5G-ready equipment. Telecom gear makers say such delays for 5G equipment, especially after the government auctions spectrum for the service, could have a major impact in delaying their roll-out. India is in any case far behind other countries in the 5G roll-out race.
 
The National Security Directive for Telecom has made it mandatory for providers to get the “trusted” tag on all telecom equipment that telcos want to buy from original equipment manufacturers (OEMs). Experts say it has been made in order to put in restrictions on Chinese telecom equipment, but they stop short of a complete ban as some countries have openly done.
 
The National Security Committee of Telecom, headed by the deputy national security advisor, will decide whom to give the tag.
 
The move came after the US prodded its global allies to stop buying Chinese telecom gear because such equipment is allegedly used for spying, which Huawei has denied. Countries like the UK, Japan, and Australia have put in 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, or whether there has been any change of ownership. Details on active components, their makers, the location of their global headquarters, and even the country where the intellectual property rights reside have to be given.
 
In the case of software, the global headquarters of the owner, that of the sub-contractors and from which country it will be upgraded need to be stated.
 
Telecom gear makers are uncertain about the percentage of Chinese components that would qualify for “trusted” certification.
 
“Most global telecom gear equipment makers that are not Chinese have a chunk of components made in China, or some are even built there. Will a US chip made in China be considered American or Chinese?” asked an executive of a European telco. He pointed out the exercise was complex and an easier way would have been to blacklist China as the US had done.