India to push for locally-made telecom equipment, challenging foreign suppliers

The Indian government is planning to increase the use of homegrown telecom equipment, challenging foreign suppliers. Officials are pushing private operators to switch to locally made products, with binding timelines possible if voluntary steps fall short. The plan aligns with India's self-reliance push, benefiting Indian manufacturers like Tejas Networks and Sterlite. However, quality concerns and resistance from private telcos may impact the implementation. The government considers telecom critical to national security, with China also requiring operators to buy domestic gear.

The Indian government is taking proactive steps to increase the use of homegrown telecom equipment, aiming to bolster national security and self-reliance. This initiative, driven by rising geopolitical uncertainties, could significantly impact foreign suppliers and benefit domestic manufacturers [1].

Government's Mandate and Voluntary Compliance

The Department of Telecommunications (DoT) has encouraged private telecom operators to enhance the share of locally-made equipment in their networks. If voluntary compliance is inadequate, the government may issue a binding mandate [1]. The push for local equipment aligns with India's broader self-reliance strategy, which seeks to reduce dependence on foreign technology and promote domestic manufacturing [2].

Impact on Foreign Suppliers and Local Manufacturers

Foreign telecom gear makers like Cisco, Nokia, and Ericsson may face challenges due to the increased demand for local equipment. Conversely, Indian manufacturers such as Tejas Networks and Sterlite could see a surge in business opportunities [1]. The government's plan is to prioritize new orders and not replace existing foreign equipment, which could mitigate the financial strain on already cash-strapped telcos [1].

Quality Concerns and Industry Resistance

Quality and availability of local equipment remain significant concerns. While local manufacturers are encouraged to step up, they currently struggle to match the quantity and quality of foreign counterparts. The government's previous mandate for state-owned BSNL to use only local gear has faced issues, raising questions about the readiness of private telcos to adopt similar measures [1].

Strategic Alignment with National Initiatives

The push for local telecom equipment is part of a broader national strategy to develop a self-reliant digital workforce. BSNL has recently partnered with global tech giants like Ericsson, Qualcomm, Cisco, and Nokia to train the next generation of telecom professionals, focusing on advanced technologies such as 5G, AI, and networking [2]. This initiative aims to create a globally competitive and innovation-driven telecom sector.

Regulatory Framework and Future Prospects

The draft National Telecom Policy 2025, released by the DoT, underscores the government's vision to transform India into a "global digital powerhouse" by leveraging emerging technologies [3]. The policy seeks to address challenges posed by technologies like AI, 5G/6G, quantum communications, IoT, blockchain, and satellite networks, positioning India as a leader in these domains.

Conclusion

The Indian government's push for private telcos to adopt local telecom equipment is a strategic move to enhance national security and promote self-reliance. While this initiative may face challenges related to quality and availability, it aligns with broader national initiatives aimed at developing a skilled and innovative digital workforce. The success of this policy will depend on the ability of local manufacturers to meet the growing demand and the willingness of private telcos to adapt to the new regulatory framework.

References:
[1] https://m.economictimes.com/industry/telecom/telecom-news/india-pushes-private-telcos-to-adopt-local-gear-amid-rising-geopolitical-uncertainties/articleshow/123244250.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[2] https://www.devdiscourse.com/article/law-order/3537410-bsnl-global-tech-giants-partner-to-train-indias-next-gen-telecom-workforce
[3] https://www.mondaq.com/india/telecoms-mobile-cable-communications/1660982/draft-national-telecom-policy-2025-potential-to-unlock-the-gateway-to-the-future