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India ban on Chinese telecom manufacturers exposed - People's Daily Online July 08, 2010
Although India has been insisting it has never issued an import ban on telecommunications equipment from particular countries, the local media recently released a "blacklist" has long existed within the Indian government, much to India's embarrassment.
India's Economic Times reported on July 2 that the Indian government made a list of banned telecommunications equipment providers, citing the impending release of new security regulations. Twenty-five Chinese companies and an Israeli company are on the list.
This ban will directly affect the orders of Chinese communications equipment manufacturers like ZTE and Huawei. Data show that in 2009, India contributed 10.10 percent of ZTE's global income, while India is Huaweis most important overseas market in the Asia-Pacific region. In last fiscal year, India contributed about 1.4 billion U.S. dollars to Huawei's global revenue, more than doubling the previous year.
In fact, the news of the Indian government ban on Chinese equipment manufacturers appeared long ago. The turmoil began in late 2009, but the message was always complicated and confusing. ZTE, Huawei and other Chinese equipment manufacturers have not been officially notified by the Indian government. But attitude of these Chinese enterprises is very clear: they hope to participate in the construction of the Indian telecom market and are willing to actively cooperate with the security review and even provide the core code for review.
According to industry sources, as an emerging telecommunications market with 3G license issuance and a network undergoing upgrades, the network construction of the Indian telecom market will enter a new round of expansion. In such a crucial time, a blacklist against China's equipment manufacturers would seriously affect their revenues and profits.
By People's Daily Online
Although India has been insisting it has never issued an import ban on telecommunications equipment from particular countries, the local media recently released a "blacklist" has long existed within the Indian government, much to India's embarrassment.
India's Economic Times reported on July 2 that the Indian government made a list of banned telecommunications equipment providers, citing the impending release of new security regulations. Twenty-five Chinese companies and an Israeli company are on the list.
This ban will directly affect the orders of Chinese communications equipment manufacturers like ZTE and Huawei. Data show that in 2009, India contributed 10.10 percent of ZTE's global income, while India is Huaweis most important overseas market in the Asia-Pacific region. In last fiscal year, India contributed about 1.4 billion U.S. dollars to Huawei's global revenue, more than doubling the previous year.
In fact, the news of the Indian government ban on Chinese equipment manufacturers appeared long ago. The turmoil began in late 2009, but the message was always complicated and confusing. ZTE, Huawei and other Chinese equipment manufacturers have not been officially notified by the Indian government. But attitude of these Chinese enterprises is very clear: they hope to participate in the construction of the Indian telecom market and are willing to actively cooperate with the security review and even provide the core code for review.
According to industry sources, as an emerging telecommunications market with 3G license issuance and a network undergoing upgrades, the network construction of the Indian telecom market will enter a new round of expansion. In such a crucial time, a blacklist against China's equipment manufacturers would seriously affect their revenues and profits.
By People's Daily Online
