DoT's revised licence agreement mandates telecom firms to procure equipment from 'trusted sources'

(Representative Image)

The revised licence agreement of the Department of Telecommunications (DoT) mandates telecom companies to procure equipment only from "trusted sources", CNBC TV18 reported on July 11.

As per the amended norms, telecom firms will have to seek approval from a "designated authority" for procuring equipment from companies which have not qualified as trusted sources, the news channel reported.

The amendments to the licence agreement effectively bar Chinese telecom equipment makers, the report said. It, however, added that the changes will not affect the updates to the existing network already inducted.

Also Read | DoT rejects proposal to allow companies to create internal 5G networks on their premises

#JustIn | Telecom department (@DoT_India) amends #Telecom license agreement, effectively bars #Chinese telecom equipment makers

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Here's more pic.twitter.com/uDEch4ULh1 — CNBC-TV18 (@CNBCTV18Live) July 11, 2022

The development comes days after a report in The Hindu Business Line said that the National Security Council Secretariat (NSCS) has not extended the waiver that allowed original equipment manufacturers (OEMs) to procure telecom gears made at factories based in China.

Industry representatives have appealed to the NSCS to extend the waiver, the newspaper said, while noting that experts have warned of major headwinds in the 5G rollout if the ban is kept intact.

Also Read | Opinion: When it comes to 5G, China is being shown the door -- rightly so

The procurement of network equipment manufactured in China came under increased scrutiny following the military faceoff in Galwan in June 2020. While Chinese telecom gear-makers were effectively banned, the non-Chinese vendors - that are counted among "trusted sources"- were told to seek requisite security clearances before procuring equipment made in their Chinese factories.

NSCS had, in 2021, granted a one-year waiver after being reportedly requested by companies such as Nokia, Ericsson, Cisco, Dell and HP.