This story is from July 2, 2020

Data theft, security issues key in selecting 5G vendors

Sources have asserted that concerns over data theft and security implications will shape the crucial call on deciding 5G vendors for India. The stance may have serious implications for Huawei and ZTE, which have struggled to quell suspicion about them being an arm of the Chinese PLA. Restrictions on telecom vendors will leave a bigger dent than blocking the 59 apps.
Data theft, security issues key in selecting 5G vendors
(Representative image)
NEW DELHI: A day after the US communications department tagged Chinese telecom vendors Huawei and ZTE as a “national security risk”, government sources here asserted that concerns over data theft and security implications will shape the crucial call on deciding 5G vendors for India.
“Fifth-generation telecom (5G) technology is absolutely crucial for accelerating and deepening the Digital India campaign. We also need to factor in cost considerations.
But considerations of integrity of data of Indian citizens and national security will be given the utmost importance when the decision is made,” a senior government source told TOI.
The stance may have serious implications for the Chinese giant Huawei, which has long struggled to quell the rampant suspicion about it being an arm of the Chinese PLA, as well as ZTE. Restrictions on telecom vendors will leave a bigger dent than blocking the 59 apps.
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The Trump administration had earlier barred American companies from working or buying telecom equipment from companies that were deemed to be national security risks.
On Tuesday, the Federal Communications Commission formally designated Huawei and ZTE to be posing threats to US national security, stopping US companies from tapping an $8.3-billion government fund to purchase equipment from these companies.
Strong suspicions about Huawei being a PLA auxiliary and the opaqueness of its finances has hamstrung the company in other countries as well.

On Tuesday itself, the UK signalled a tougher line against Huawei, while Australia had imposed a ban on Chinese 5G equipment even before the US action. Others such as Canada and Germany too are looking at other vendors, although Huawei has not been banned yet.
Given the focus of the Modi government on Digital India and the criticality of 5G for delivering high-speed services, the government’s stance might spell an advantage for Huawei and ZTE’s competitors — Samsung, Ericsson and Nokia — and undercut the cost advantage of the Chinese players that have made strong inroads into India.
Senior government sources TOI spoke to confirmed that cost will not be the dominant consideration in the decision, in what is being seen as a positive development for rivals to the Chinese companies, which have complained of being priced out because of the “hidden subsidies” that these companies may receive from the Communist leadership. “We are exploring all options,” said an official, privy to the deliberations on 5G technology.
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