Bharat Sanchar Nigam (BSNL), the fourth largest telecom operator in India, will be cautious while deciding on extending contract with China’s ZTE to set up 5G network in India due to security concerns, Economic Times reported.
BSNL chairman Anupam Shrivastava indicated that the Indian telecom operator will not select telecom network equipment from China companies for 5G roll outs if there is any threat to network. But the report did not mention about Huawei.
“When it comes to rolling out the 5G network in India, a cautious call will be taken,” BSNL chairman Anupam Shrivastava said. He said the telecom technology needs to be protected.
BSNL signed a memorandum of understanding with ZTE, the fourth largest telecom vendor globally, in September 2017 to work together on 5G wireless technology for research and knowledge-sharing purposes.
“If there is no risk associated, we should adopt technology advancement from wherever it is coming,” Shrivastava said. Leading telecom telecom equipment makers who are looking for 5G business in India include Ericsson, Nokia, Huawei, Samsung, in addition to ZTE.
Huawei, another China-based telecom network maker, has been banned in Australia from supplying 5G equipment due to its alleged association with China Government. Huawei is also facing criticism in the UK market. Huawei is the largest telecom vendor in the world.
Huawei has already lost considerable business in US. Ericsson and Nokia announced two major 5G equipment deals with T-Mobile, the third largest wireless operator in US.
US recently blocked ZTE from buying telecom / technology components from US-based technology companies after it violated some of the US guidelines with regard to supply to Iran. ZTE also paid huge penalty to US to resume telecom business.
ZTE earlier said it expected to record a net loss in the first half of 2018 due to the hefty fine it agreed in order to lift a U.S. ban on component supplies.
ZTE estimated a preliminary net loss of 7-9 billion yuan or $1.05-1.34 billion in January to June period versus a profit of 2.3 billion yuan the previous year, Reuters reported.
ZTE signed a settlement agreement with the United States Commerce Department offering to pay $1 billion penalty and deposit $400 million in an escrow account. Commerce Department found that ZTE made false statements about disciplining 35 employees after it pleaded guilty last year to violating U.S. sanctions by illegally shipping U.S. goods and technology to Iran.
