Shiv Putcha and Julien Grivolas/Ovum
Even in the best-case scenario, the entire process could take around a year, since the certification testing process is time consuming. Huawei and ZTE must also prepare for certification at the proposed Indian labs, which would involve a much longer timeframe.
Operators opting for the self-certification path will have to reserve funds for bank guarantees and provisions (to cover the risk of prosecution) that would otherwise have been invested in network expansion.
These financial provisions may negatively alter operators’ deployment plans if operators need to raise cash to offset these requirements.
The decision by the Indian government can be viewed as the best possible compromise under the circumstances.
It remains good news for Huawei and ZTE as well as for the Indian operators that are already relying on their solutions and were planning to use them for future network expansion.
The bad news is that 3G deployment schedules are likely to be delayed, which could adversely affect 3G service launches.