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Global Times: India bars Chinese telecom giants from providing telecom gear for its 5G network, likely to further delay 5G rollout in the country
Chinese article by 爱集微
English Editor 张未名
07-14 15:27

India has further tightened the rules for telecom licenses, mandating operators to only purchase devices from "trusted sources" for network upgrades and expansion. The latest amendment has been seen as a step to "completely stop Chinese vendors" such as Huawei and ZTE from providing telecom gear to Indian telcos, reported China’s official English newspaper Global Times based on Indian local press. 

Global Times’ report pointed out that If India insists on excluding Chinese companies from participating in India's 5G development, this will undoubtedly further jeopardize the confidence of companies from the two countries to carry out mutually beneficial cooperation, and will limit the development of India's digital economy.

Chinese companies, including Huawei and ZTE, hold advantages in terms of technology and cost compared with Indian companies. India's digital economy has proliferated in recent years, and this promising area has become a bright spot in the Indian economy. Several international consultancy firms found that India's digital economy is growing at one of the fastest rates in the world and its development journey is following China's. 

The Indian government also wants to accelerate the growth of this promising sector of its economy. According to media reports, India's digital economy's contribution to GDP is expected to reach 20% by 2025.

India is now using a "trusted sources" list to exclude Chinese companies from the market in disguise. This is actually imposing political interference to act against market rules. Although such move will likely protect the interests of individual Indian telecom companies, it will definitely delay India's 5G progress. 

India's 5G developments need comprehensive national strength and communication infrastructure support. It is still relatively backward in communication equipment manufacturing and 5G infrastructure construction in India. 

Earlier this year, the Indian government planned to hold the 5G spectrum auction in June, with commercial launch on August 15. However, the auction has been delayed to July 26, according to recent media reports. As the countdown to the rollout of 5G mobile services in the country continues, for average users in the country, it's still unclear when 5G will be available.

If India continues to go against market rules and adopt discriminatory policies against Chinese companies, most of the market share may be taken up by competitors from Western countries. India is bound to pay higher prices on 5G equipment and technology.

India's economy is currently under mounting pressure amid external uncertainties. In the critical stage of post-pandemic recovery, India must support the economy efficiently. Chinese companies will bring dynamism to the Indian digital economy, noted Global Times.

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