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2010-05-02, 02:11 AM
Huawei seeking clarity on India security concerns
Fri Apr 30, 2010 7:27pm IST

NEW DELHI (Reuters) - China's Huawei Technologies said on Friday it was seeking clarification from authorities after reports that India was blocking the purchase of telecoms gear from Chinese vendors in the booming market.

The world's second-largest telecommunications equipment maker had not received any official communication on the issue, and was willing to cooperate with Indian government agencies to resolve their concerns on security, an India-based company spokesman said in a statement.

Earlier, the Financial Times reported that India was blocking the purchase of telecoms equipment from Chinese vendors on national security grounds.

Indian government officials, however, told Reuters they were not aware of any ban on Chinese gear.

"Proposals for procurement of equipment from Chinese original equipment manufacturing vendors have not been recommended due to security concerns," the Financial Times reported, quoting a letter from the Department of Telecommunications to the Prime Minister's Office.

"Therefore, the proposals from the service providers for purchase of Chinese equipment is turned down," the paper quoted the letter as saying.

Contacted by Reuters, Department of Telecommunications spokesman Satyendra Prakash however said on Friday he was not aware of any ban on Chinese equipment vendors.

"It is not specific to any network or any equipment company. There has to be a security clearance from the DoT as per the rules," he said, referring to existing rules.

A spokesman for Bharti Airtel, India's top telecoms operator, said they would not comment on matters related to national security.

India started overhauling its security system after Islamist militants killed 166 people in a 3-day attack in Mumbai in November 2008. The militants used a satellite phone while travelling to Mumbai by sea and kept in touch with their handlers in Pakistan on mobile and Internet phones.

The government has made it mandatory for telecoms firms to get security clearances from the telecoms ministry before placing any equipment purchase order, and in the past has restricted the use of Chinese-made telecom equipment in sensitive border areas.

Senior security officials also said they were not aware of any ban on Chinese equipment.

"I'm not aware of any such blanket ban. In fact, Chinese equipment is coming in," G.K. Pillai, India's Home Secretary, told Reuters.

"We want stringent security in place so the country's security is not compromised. But we have not heard of any blanket ban on Chinese equipment," said U.K. Bansal, India's Internal Security Chief.


Shenzhen-based Huawei and cross-town rival ZTE Corp have taken on global names like E*******, Nokia Siemens Networks and Alcatel Lucent in recent years, winning major contracts in both emerging and developed markets.

Both Huawei and ZTE are active in the Indian market, which is adding mobile subscribers at the fastest pace in the world and is the second-largest wireless market behind only China.

Huawei more-than doubled its India revenue during the year to March 2009 to 62.4 billion rupees ($1.4 billion) and ZTE generated 48 billion rupees in the same year, according to data compiled by technology publisher CyberMedia.

India is currently auctioning third-generation (3G) mobile spectrum and plans to allot radio waves to telecoms operators by September. Investments in 3G networks would also expand gear makers revenue from India.

"It is the hope of Huawei and it is also in the interest of the industry that a fair and non-discriminatory policy to address this issue is in place," the Huawei statement said.

2010-05-04, 12:43 AM
thanks for the news

2010-05-04, 12:48 AM
why they blocked the deal

2010-05-04, 04:04 AM
Due to some security issue....Check news for more details....