Govt wants telcos to ditch foreign gear for homegrown equipment: Here's why

The Centre is reportedly urging private telcos to use more homegrown equipment, a move that could hit foreign suppliers and benefit local firms, with a mandate likely if voluntary targets fall short

The government is planning to increase the use of homegrown telecom equipment, a shift that could reshape the industry and challenge foreign suppliers, according to a report by The Economic Times. The news report said that officials are pushing private telecom operators to switch more of their networks to locally made products, and may make it mandatory if voluntary steps fall short.

 

Why it matters

 

• The plan could dent the business of global telecom gear makers like Cisco (US), Nokia (Finland), Ericsson (Sweden) and Samsung (South Korea).

• Indian manufacturers such as Tejas Networks, HFCL, Sterlite and VVDN could benefit.

 

• The move aligns with India’s broader push for self-reliance, especially amid rising global trade tensions and higher tariffs.   

 

What the government is doing

 

• The Department of Telecommunications (DoT) has asked operators to submit roadmaps for adopting local gear, the news report said.

• If companies do not comply voluntarily, the DoT could set binding timelines for implementation.

 

Quality concerns

 

• A DoT standing committee earlier rejected a telecom regulator proposal to give licence fee rebates for using indigenous gear. That plan is now being re-examined.

• Telcos have agreed in principle, but want locally made products to match foreign gear on price and quality.

• The government is considering applying the rule only to new orders, avoiding costly replacement of existing equipment, the news report said.

 

Matter of national security

 

• Telecom is considered critical to national security, and India is not alone in its approach. China also requires operators to buy only from domestic firms.

• BSNL already uses only local equipment, with its 4G rollout handled by C-DoT, TCS and Tejas. The same approach is planned for its 5G network.

• A similar strategy could be extended to private operators, with priority categories identified for local manufacturing.   

 

What Indian telecom companies think

 

However, private telcos are reportedly resisting a DoT proposal to directly allocate airwaves for private 5G networks instead of auctioning them.

 

• Operators argue that direct allocation could hurt national security and deprive the government of auction revenue.

• They said that building private 5G networks independently would be costly for enterprises, requiring heavy spending on:

-Equipment

-Spectrum management

-Security

-Network maintenance

-Skilled staff

-Regular technology upgrades

 

What they want instead

 

• Telcos recommend that captive non-public 5G networks (CNPNs) be set up through licensed telecom operators, either via spectrum leasing or network slicing.

• CNPNs are private communication networks built for an enterprise’s own use, not for the public.