SEARCH

Business » Industry

Updated: June 2, 2010 19:10 IST

Nod to allow import of telecom equipment after certification

PTI
print   ·   T  T  
The Department of Telecom is preparing the modalities for the import of sensitive telecom gears. Photo: P.V. Sivakumar
The Hindu The Department of Telecom is preparing the modalities for the import of sensitive telecom gears. Photo: P.V. Sivakumar

In a move that could help several cellular operators, the government has agreed to allow import of telecom equipment certified by international security audit firms.

The Department of Telecom is preparing the modalities for the import of sensitive telecom gears to which the Ministry of Home Affairs agreed to.

The move will prove to be a breather for Chinese vendors like Huawei and ZTE, as well as Indian telcos like Reliance Communications and Tata Teleservices that are looking for cost-effective telecom gear to expand their networks.

As per the proposal, telecom companies will be allowed to import the equipment from foreign suppliers only after an International Certification Agency visits the plant of the vendor and gives a security clearance.

India currently does not have any Certification Agency so it was planning to rope in eight such international bodies to carry out the task.

The Mobile operators who intend to import telecom equipment have to give a bank guarantee to the Department of Communication. The operators will be liable to forfeit their bank guarantee and may also face criminal proceedings, if any security threats are detected in the equipment at a later stage.

The stopgap solution, which will be in place for the next 12 months, will ensure that Indian telcos do not face project delays.

The government, in the meantime, will initiate the process to set up an indigenous Certification Agency of international standard.

The Hindu presents the all-new Young World
ADVISORY ON OIL BLOCKS
Should India restrict foreign investors in a globalised world?
Yes
No
Can't say

National

International

Sport


O
P
E
N

close

Recent Article in Industry

Nokia, which sold its handset business to Microsoft in April for over $7.2 billion, said its operating profit stood at 12 million euros in the same period last year.

Nokia Q2 profit at €284 million

Finnish telecom equipment maker Nokia on Thursday posted a higher operating profit at 284 million euros in April-June this year and said... »