Huawei eyes uncertain future in India

Huawei is facing massive headwinds in India, with no new network deals likely to arise due to the general sentiment against Chinese companies.

As European network providers such as Nokia and Erricson prepare for the upcoming 5G rollout, the Chinese multinational may struggle to get the mandatory ‘trusted sources’ label, excluding them from any future network rollouts. 4G and 5G. Sources also said Activity area carriers are unlikely to consider Huawei for any future network deployments, both 4G and 5G.

Another source said Activity area, on condition of anonymity, that the quality of maintenance and upkeep by Huawei for its existing network sites has also deteriorated.

Vodafone Idea most exposed

At present, Vodafone Idea has the maximum number of Huawei network sites followed by Airtel which has Huawei networks in Karnataka. It is still unclear whether Bharti Airtel and Vodafone Idea will switch Huawei circles to other network providers. However, a senior network official said Activity area, on condition of anonymity, that a telephone company is studying this option and that the discussion is in its infancy. “Anything and everything is under discussion,” the source said.

India’s parallel ban on Chinese network providers is a consequence of the bloody clash between Indian and Chinese forces that happened nearly two years ago in Galwan. As a result, the National Security Directive on the Telecommunications Sector was approved by the cabinet in December 2020. According to this directive, only “trusted products” from “trusted sources” could be used by operators to implement place telecommunications networks in the future.

Open RAN could replace Chinese providers

This could also be a problem for operators, as Chinese network products are cheaper than products offered by their European and Korean counterparts. But with many new players exploring the Open Radio Access Network, experts believe local providers such as TCS and Tech Mahindra could fill the void. “However, it will take 3-5 years for local manufacturers to be a viable alternative. For the time being, they are used as bargaining chips for operators,” said an expert.

When contacted by Activity area for a comment, Huawei noted, “The Indian market is very complex with many challenges. Recent developments in India have undoubtedly been a test for Huawei. Just as our customers in India have overcome their many challenges to find solutions, we are confident that the problems here will also be addressed in the same way. Our relationship with our customers across enterprise and telecommunications has been built over decades, fueled by our core value of customer focus. We will continue to be rooted in India and serve our customers well. »

Published on

June 05, 2022

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