Vodafone Idea, an Indian telecom operator, is reportedly in final discussions towards processing an order for expanding network capacity through Chinese vendors in six circles.
The network contract had already been awarded to Chinese telecom equipment manufacturers, and this new order is likely to be applicable for the expansion of the network capacity of these existing vendors.
One of the sources reportedly said that Vodafone Idea is looking to expand in six network circles that have been facing heavy traffic. While Chinese telecom gear makers are set to supply these services to the company, Vodafone Idea will procure equipment from Chinese technology giants such as ZTE, and Huawei.
The expansion will be executed in one of the previously sidelined networks, cited another source.
Chief Technology Officer of Vodafone Idea, Jagbir Singh was quoted saying that the company will not be giving any new orders to Chinese vendors. However, it will be using Chinese equipment for the networks currently being provided by them.
Notably, new amendments in the telecom licensing norms are anticipated this month to effectuate the guidelines provided by national security directives for the telecommunications sector. This will help the Indian government in the regulation and monitoring of network equipment from China and other non-friendly countries.
The government is likely to soon declare a list of trusted sources and products that can be installed in the country's telecom network, under the provisions of new licensing norms. However, the directive does not require mandatory replacement of the existing infrastructure, and the new guidelines will also not annul yearly maintenance or update agreements for installed equipment.
The Indian government has amended the general financial rules to ensure the enforcement of restrictions on bidders in public procurement from neighboring countries. The decision was taken on grounds of national security and defense of India’s interests.
Public companies will not be allowed to accept bids if a qualified bidder is from a country sharing land borders with India, which includes China.
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