India Bans Chinese Mobile Phone Imports

[faizone 15]

Source

India's Department of Telecommunications (DoT) has issued a directive that calls for the banning of the import of mobile phones made by Chinese manufacturers. The move comes after the Indian Home Ministry expressed concerns regarding the proliferation of Chinese handsets in India. They were worried about the spyware and malware threat that these handsets posed. The ministry was also worried that these phones will offer intelligence agencies from China, access to telecom networks in India.

India has been facing "issues" with Chinese handsets for quite some time now. While it was the about all the unbranded, IMEI-less phones back in 2008-09, this time, even reputed manufacturers like ZTE and Huawei are affected by the latest ban. If that wasn't all, the DoT has also asked Indian mobile operators to cancel orders from Chinese telecom equipment manufacturers. This has come at a time when Chinese made devices were becoming a rage in India. Manufacturers like Micromax, Intex and Videocon too have some handsets that are manufactured by Chinese companies. As of now, there is uncertainly if these handsets also come under the ban.

Interestingly, it will be manufacturers like Nokia, Sony Ericsson and the likes who would gain from this ban. However, these companies too have their manufacturing units in China. As of now, prima facie, it seems only Chinese companies will be affected by this blanket ban.

[prafull4u 24]

This is what we can expect in India.... instead of regulation the import of product, we are banning the import altogether. probably with pressure from Bigger manufacturer...

We dont have a organisation to look at the quality of product imported... We even do politics in buisiness. Are we really growing i am in delimma.

[raccoon 53]

This is very bad... the handsets are a very good competition for the biggies. 

[harismahesh 55]

Now i remember sadikkbhai lines....(from an ad) "yere India hein mere dosth..sab kuch chaltha hai"

Plz excuse as it may not be the correct lines

[Dushie 30]

There goes the competition out of the roof and monopoly begins for bigger players.

[abhi.r 95]

Eew that really s**ks, China mobiles have given huge competition to all the branded mobile phones. nokia low end mobiles sales have gone to almost zero because of super low cost china phones.

And now they bribe the berucrats to ban the imports of China Mobile Phones. thats very unhealthy. Why dont they come and compete side by side with China Mobiles.

If they price their products reasonably, I am sure people would like to buy more of Branded goods and wont mind to pay little extra. But when the difference is so HUGE. why wont consumer prefer china mobiles.

This is not a healthy competition. But missuse of post and power.

[raccoon 53]

Vested interests everywhere. What was needed was regulation, tests, etc., esp. in areas of radiation, etc. Instead they just go for an all out ban! How lame can it get??     This decision should be taken to court...

[Sadikk 301]

its nothing but a reply to China import of Indian Beefs and other non-veg products...

india and china will see too many steps to bad thier relation.. as we India is now playing Proxy cold war with china for USA..

USA don't want china to be as big as them... Hence all this impo-expo hurdles started initially with us so that USA can come in picture in more serious problems later... i can see more tension from china thn Pakistan in coming years...

Buckle up guys... this could take us to serious mess.. as china is something they don't take bull****s from no one...

[ACS 130]

I heard that LG & Samsung mobile divisions were reeling under severe losses for some time as they hardly have been able to make any mark in the premium segment.. its this segment thats really picking up now.

Good thing for me: At least e-Bay will now give relevant handset searches.

[::Hitesh:: 1,763]

I am with DoT here !

[SumitVerma 187]

^

Me too!

[situ1962 21]

Those handsets were banned since long.But this time the govt has banned china manufactured telecom equipments used by operators.Apparently there is an intelligence report that those equipments contain spyware and/or malware which can give access to our telecom networks right from china.If this is true it's really a security threat.If even half true,I am with the govt.

[santhoshavanoor 7]

I'm also with DoT and concerning the security reasons, it is very important to ban all chineese mobile phones. Chineese people can hack our mobile network easily. But what about the nokia and other big manufacturers chineese made handsets?

[Harshal 11]

What about Indian companies like Spice or the various Max brands? They are all Chinese handsets too.

[SumitVerma 187]

^

They are Chinese true, But atleast they owe explanation if something goes wrong.

[raccoon 53]

Seems most people are jumping to conclusions. There needs to be some evidence to support these allegations!

I'm more inclined to suspect vested interests in the garb of security concerns.

[chintan1 6]

Now government is telling No blanket ban on import of Chinese telecom equipment It will take case by case :confuse:

Source

[KanagaDeepan 1,084]

Govt should ban DoT for playing the confusing BAN games (first with S-Tel, now with Chinese equipments...

Edited May 4, 2010 by KanagaDeepan

[::Hitesh:: 1,763]

its not gonna happen !!

[raccoon 53]

Lets not forget the banning of text messages in J & K. These funny bans are happening too often... they don't to be too sure of anything themselves.

[AGK 0]

"Security reason" is a phrase often used by governments to misguide and mislead people so that they don't question them .If some people do then they are simply branded as unpatriotic and anti nationals.

[kesav 127]

Telcos can buy Chinese gear on security check

NEW DELHI: In a big respite for mobile phone operators, the government has agreed to allow import of Chinese-made telecom gear, certified by

international security audit firms such as Canada’s Electronic Warfare Associates, US-based Infoguard and Israel’s ALTAL Security Consulting, till a dedicated certification centre and test lab is in place.

This was decided after two days of PMO-level talks, which ended on Tuesday, attended by top officials of the home and telecom ministries, Intelligence Bureau (IB), R&AW and the National Informatics Centre (NIC).

The government will also allow self-certification of imported telecom equipment by mobile operators against a bank guarantee given to the communications ministry, an official involved in drafting these norms said. Mobile operators will be liable for forfeiting their bank guarantee and can also face criminal proceedings, if any security threats are detected in ‘the self-certified equipment’ at a later stage.

The stop-gap solution, which will be in place for the next 12 months, will ensure that Indian telcos do not face project delays even as the NIC lab is being set up. Once functional, NIC will study the software codes of all telecom hardware to address the government’s security concerns.

The move will be a breather for Chinese vendors like Huawei and ZTE, as well as Indian telcos like Reliance Communications, Tata Teleservices and Uninor, among others, that are looking for cost-effective telecom gear to expand their networks. Many domestic mobile firms have been campaigning for a quick fix to the Centre’s failure to clear import of Chinese-made telecom gear, and have pointed out that buying costlier equipment from Western vendors could destroy their business case.

Last month, Tata Teleservices had first proposed that foreign agencies be allowed to check communication networks in the country for spyware. The Tatas had also offered to bear the cost for such checks provided the government allowed import of network equipment certified by such firms.

DoT draws up clearance list

The telecom department has also drawn up a comprehensive list of core equipment that will require mandatory security clearance by international security audit agencies in the immediate term before placement of purchase orders by any mobile service provider.

Key items in this list of critical core telecom equipment are mobile switching centres (MSCs), MSC servers, routers, LAN switches, packet data serving nodes (PSDN), media gateways, serving GPRS support nodes (SGSN), soft switches, call servers, firewalls, intrusion detection systems, intrusion prevention systems, session border controllers (SBC), operation support systems (OSS) and provisioning management systems, among others, says an internal DoT note, a copy of which is with ET.

“DoT is waiting for the home ministry to clear this list of critical core telecom equipment. Security clearance will be required for the items classified as `core equipment’ and not their components. The agency will essentially run a thorough check on network equipment to preempt any subversive activity through the installation of malwares, trapdoors, black boxes etc. Security clearance will not be required for passive equipment and equipment/software that is manufactured or developed in India by Indian-owned manufacturers,” said a DoT official.

Controversy over security concerns regarding Chinese vendors has rocked India’s telecom sector for the past few months. The central government denies there is any blanket ban on import of telecom equipment and networks from China, but Huawei and ZTE complain that the communications ministry has not approved any contracts that Indian operators have signed with them since February 18. Documents available with ET show that the Centre has rejected a total of 130 equipment contracts signed by local firms such Uninor, Tata Communications, Airtel, Idea, Spice, Vodafone and Aircel with Chinese vendors since February.

“(The delay in getting clearances) is impacting the business of all operators as it delays their ability to roll out. The delay is biting the industry already as their network rollout and capacity increase are all being impacted,” Telenor executive vice-president and head of Asia operations Sigve Brekke told ET. Telenor offers services in India under the Uninor brand.

Since 2005, the home ministry has warned many times that foreign telecom equipment vendors, especially Chinese, may install spyware and malware that could monitor voice and data traffic and bring down networks. Last year, the government banned all mobile phones without a proper unique identification number, and limits have been set on the number of overseas workers that can be employed on infrastructure projects.

Top executives of both Huawei and ZTE were in India over the last few weeks to meet home, communication, commerce and telecom department executives and have been taking pains to assure a wary India that their telecom gear do not pose a national security threat.

In another development, ET has learnt that once NIC sets up the proposed test laboratory in the next six-to-eight months, security audit will only happen in case of imported telecom gear that has been classified as “core equipment” by DoT.

source:: http://economictimes.indiatimes.com/News/News-By-Industry/Telecom/Telcos-can-buy-Chinese-gear-on-security-check/articleshow/6000948.cms?curpg=1

Great Great relief for Indian Telecom Sector.

It's bit perplexing for me to understand the logic behind the testing of china manufactured components in Western labs (Canada’s Electronic Warfare Associates, US-based Infoguard and Israel’s ALTAL Security Consulting) but not the reverse.

I feel it's better and neutral that Govt. mandate all the western manufactured components(from NSN, Ericsson, Alcatel) to be tested in eastern labs (like labs in China & Japan) and the eastern manufactured components (from Huwaei, ZTE)to be tested in western labs(like USA,Canada,Isreal) till our won lab comes live.

When Chinese can introduce malware/spyware certainly USA can do.....

Edited June 3, 2010 by kesav

[kesav 127]

Centre ropes in BT to help on telecom security software

UK-based BT, formerly British Telecom, will be a consultant to Indian Institute of Science (IISc) in Bangalore to help develop a software for testing telecom equipment.

“BT has been appointed as a consultant by DoT (Department of Telecommunications) to give expert advice in developing a software for testing. It offers its services to governments globally. BT will closely work with IISc, Bangalore, on this project, and send their experts here in India,” a senior telecom ministry official told Business Standard.

Once the laboratory is set up by the National Informatics Centre (NIC), India will have the capacity to test equipment, instead of depending on global testing agencies.

The development comes at a time when Chinese telecom equipment providers, Huawei and ZTE, are facing security issues in launching their products in India following a home ministry directive.

The project, however, could take one or two years to complete. The software would check for spyware or malware that could be a possible threat, the official said.

“Having our own testing software and lab will ensure the country’s communication network is fully secured. Relying on global firms for testing telecom equipment used in India is not a good idea. This project will take time but it will definitely address the security issues,” said the official.

Although the government maintains there is no ban on Chinese telecom equipment, the controversy is a matter of concern. The contracts of Huawei and ZTE with a few Indian mobile service providers have been stuck for six months.

Many operators, including new ones, have come out strongly against the ban on Chinese equipment because of the latter’s low price, compared to other global vendors such as Ericsson, Nokia and Siemens. The ban could increase the cost for service providers.

DoT and the ministry of home affairs are working on new guidelines to address security issues. DoT has already asked state-run Bharat Sanchar Nigam Ltd not to award orders to Chinese firms.

source:: http://www.business-standard.com/india/news/centre-ropes-in-bt-to-helptelecom-security-software/396907/

[kesav 127]

Huawei races ahead of Ericsson, NSN in FY 2009-10 Indian Telecom Vendors Rankings

The rapid rise of Huawei Technologies continued in the fiscal 2009-10 with the company racing past its fierce European competitors Ericsson and Nokia Siemens Networks (NSN) reveals new findings by Voice&Data.

Huawei’s revenues during the mentioned period increased from Rs.6,240 crore to Rs.11,000 crore at a yearly growth rate of 76.3%. Its Chinese counterpart, ZTE Corp. was the only other vendor to register a phenomenal growth rate of 50% with revenue rising from Rs.4,800 crore to Rs.7,200 crore.

Overall the telecom equipment sector (Voice&Data100 survey considers enterprise equipment, carrier equipment and phone segments) witnessed a growth rate of 18.6% which is lower than the 20% growth achieved in fiscal 2008-09. Overall revenues for the sector was at Rs.136,833 crore or $ 28.8 billion as compared to Rs.115,382 crore last fiscal.

“The telecom equipment segment growth is impressive in the backdrop of the recession-hit economy at large, and the fact that the 3G rollout did not happen last year,” said Ibrahim Ahmad, group editor, Voice&Data).

The magazine from CyberMedia predicts that the segment will continue to grow in the current fiscal due to the 3G and BWA network rollout opportunity as well as 2G network expansion by operators especially the new entrants.

Nokia is at the top of the list with revenues of Rs.14,100 crore. But the Finnish company witnessed a decline of 14.9 % in its revenues.

Ericsson and NSN managed moderate growth rates of 4.9% and 9.9% respectively.

The Carrier Equipment segment grew at a rate of 21% to clock revenues of Rs.89,476 crore or $ 19 billion fueled by growth of wireless infrastructure, WiMAX transmission and broadband infrastructure.

The Enterprise telecom equipment sector grew by 31% to reach Rs.20,007 crore. Switch and Router sectors grew by 92% and 65% respectively.

source :: http://telecomtiger.com/Corporate_fullstory.aspx?passfrom=breakingnews&storyid=9373&section=S162

The article is the testimony to the growing chinese vendors(Huawei, ZTC) against falling western vendors (NSN,Ericsson, Alcatel-Lucent) in telecom infrastructure market.

[kesav 127]

Centre keen on nodal vendor for mobile cos

NEW DELHI: The Centre has mooted a proposal to set up a company that will be owned by all telecom operators and will be responsible for managing,

maintaining and building communication networks for them.

All international equipment suppliers, Nokia Siemens, Ericsson, Huawei, and Alcatel Lucent, among others, will execute contracts for all service providers through this company, if this proposal becomes reality, a department of telecom (DoT) official told ET.

The proposal is based on the premise that getting telcos and gear makers to operate within such a set-up will address security concerns arising out of foreign, especially Chinese, telecom equipment companies building and managing telecom networks in the country.

According to documents available with ET, this proposed company will be modeled on the Computer Maintenance Corporation of India (CMC), which took over the maintenance of IBM installations at over 800 locations around the country, and subsequently, maintenance of computers supplied by other foreign players.

CMC had changed from a hardware maintenance company to a complete end-to-end IT solutions provider before it was privatised with the Tatas buying a majority stake in the 1990s.

This proposal was prepared after a meeting two weeks ago attended by representatives of DoT, home ministry, Prime Ministers Office and security agencies.

The networks of Indias largest firmsBharti Airtel, Reliance Communications (RCOM), Vodafone, Tata Tele and Ideaare being managed by international equipment suppliers such as Ericsson, Nokia Siemens, Huawei or Alcatel-Lucent. RCOM has outsourced its GSM network management to Chinas Huawei while Loop Telecom has tied up with another Chinese firm, ZTE, for its GSM rollout across India.

An internal DoT note states that the proposal must first be discussed between different ministries as well with all telecom operators to examine its feasibility. It also adds that further discussions should be held to gauge if the government can mandate all maintenance contracts to be directed through this national maintenance firm.

A DoT official said the proposal has been sent to all telecom companies and they are supposed to give their feedback on Friday. Several telcos and telecom equipment suppliers that ET spoke to were sceptical about the feasibility of this proposal and said there was no international precedent for such a company.

This is a theoretical proposal. There is no international example of such a model, said the regulatory head of a leading telco.

The government has in the past few months tightened the rules for foreign vendors. In March 2010, a telecom ministry directive said equipment makers such as Nokia Siemens, Ericsson, Alcatel-Lucent and others who maintain and manage mobile networks of cellphone companies here must only employ Indian engineers.

The operation and maintenance of telecom networks should be entirely by Indian engineers and dependence of foreign engineers should be minimal or nil within a period of two years, the communications ministry said in a notification posted on its website.

The directive also added that all gear makers from abroad will have to manufacture core telecom equipment locally or mandatorily transfer technology to Indian manufacturers within a three-year period.

In case of non-compliance of the transfer of technology clause, the vendor/service provider shall be penalised. Criminal proceedings would also be started in this case, it added.

India offers a $150-billion opportunity to telecom gear makers. All telecom gear makers combined have several hundreds of foreign staff on their rolls in India.

source :: http://economictimes.indiatimes.com/news/news-by-industry/telecom/Centre-keen-on-nodal-vendor-for-mobile-cos/articleshow/6034771.cms

Very interesting....Eager to know how they implement it...

This is a theoretical proposal. There is no international example of such a model, said the regulatory head of a leading telco.

The above statement is ridiculous and insensitive.

Why India should always import concepts from other countries?

Are we not capable of implementing our own security framework?

Everything new in the world will start from theory and moves to concept and then to reality.

Use of the word theoretical should be in the positive connotation and certainly not as expressed in the above statement.

Edited June 11, 2010 by kesav