China’s telecom vendors perplexed over India’s lack of transparancy on security issue

MUMBAI - Chinese telecom gear manufacturers are worried about getting a lower hand in competition with western rivals if the Indian government does not allow them access to the first around of 3G telecom device purchase.

Indian telecom operators are expected to roll out their 3G services prior to September with the auction of 3G spectrums ended on May 19.

Now, they are awaiting the release of official telecom security norms to understand how to regain access to an emerging market.

A source with China-based telecom device producer ZET Corporation said they were hoping for a swift resolution on delayed orders.

An official with Huawei Technologies complained about documents on telecom security norms swelling from several pages to over 40 pages.

According to Xinhua, New Delhi has delayed the clearance of telecom gear sale orders with 25 Chinese vendors since early 2010 due to security concerns from India intelligence department.

The orders are valued at about two billion dollars.

China has told India to state its position on the issue clearly and quickly.

China said there was a need for India to provide an open and transparent investment environment for its telecom companies, even as the ruling Communist Party’s official media strongly hit out at the Government of India for carrying out an “under the table” and “unfair” competition against the Chinese industry.

Commerce Minister Chen Deming said they were looking into reports that 25 Chinese companies were among the 26 telecom equipment vendors reportedly “black-listed” by the India because of security concerns.

Beijing said it would “investigate through normal channels between the two governments, and communicate and negotiate with the Indian side after making the facts clear.” (ANI)