India reportedly weighs 5G ban on Chinese firm
Huawei could be banned from participating in India’s 5G
network rollout, just months after it was given the green light to participate
in the country’s trials for the technology.
It comes after the Indian government said it would block 59
Chinese apps such as TikTok and WeChat, claiming they were a threat to national
security.
As part of those discussions, Indian government ministers
discussed the country’s 5G rollout plans and whether Chinese telecommunications
equipment giants Huawei and ZTE should be allowed to participate, according to
a report from the Times of India.
India’s Ministry of Electronics and Information Technology,
as well as Chinese firms Huawei and ZTE, were not immediately available for
comment when contacted by CNBC.
5G refers to the next-generation mobile networks that
promise super-fast download speeds and the ability to support critical
infrastructure. India has lagged behind in its rollout of the technology, while
other countries like South Korea and China have powered ahead.
In December, India said it would allow all vendors to
participate in 5G trials with vendors. But the latest report of a potential ban
on the Chinese firms appears to be a U-turn.
Tensions between India and China have been rising over their
disputed border high in the Western Himalayas and a clash earlier this month
left 20 Indian soldiers dead.
“The China-India ... dispute, compounded with the economic
stress caused due to the (coronavirus) pandemic, has likely forced the
government thinking to adopt a strategy similar to U.S. to potentially
retaliate in a way where it would hurt China the most,” Neil Shah, research
director at Counterpoint Research, told CNBC.
India’s biggest mobile network, Reliance Jio, uses Samsung
for its older 4G network. The other two largest players — Bharti Airtel and
Vodafone Idea — use a mixture of vendors including Huawei. All three carriers
have submitted applications to do 5G tests with various vendors including
Huawei, Indian publication the Financial Express reported this month.
Huawei gear makes up one-third of Bharti Airtel’s current
network and 40% of Vodafone Idea’s network, according to Counterpoint Research.
It would be a “significant loss” for Huawei and ZTE if the
government goes ahead and bans them, Shah said.
All three Indian telcos were not immediately available for
comment when contacted by CNBC.
‘Tide is turning’
For about a year and a half, the U.S. government has been
pressuring countries to block Huawei from their 5G networks, alleging that its
gear could be used by Beijing to spy on citizens of foreign nations. Huawei has
repeatedly denied that it would let this happen.
On June 24., U.S. Secretary of State Mike Pompeo declared
that “the tide is turning against Huawei as citizens around the world are
waking up to the danger of the Chinese Communist Party’s surveillance state.”
The latest report that India is assessing whether to ban
Huawei and ZTE will likely add to Pompeo’s confidence.
Washington’s efforts have yielded mixed results so far. Some
countries such as Australia and Japan following suit, while others like U.K.
allowing the Chinese giant limited participation in its 5G rollout. But it
appears more countries and mobile carriers are beginning to shun Huawei — a
sign that the U.S. campaign could be working.
Telus and BCE, two of the big carriers in Canada have chosen
Ericsson and Nokia to build their 5G network. Canada’s government has yet to
make a decision as to whether Huawei will be excluded from the nation’s 5G
rollout.
Britain is also reassessing its stance on Huawei. The U.K.’s
National Cyber Security Center (NCSC), which is part of intelligence agency GCHQ, launched an
emergency review of Huawei’s role in May, following new U.S. sanctions on the
firm.
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