India is considering mandatory security tests on all imported telecom equipment.
The government has also reportedly asked several major operators, including Bharti Airtel, Reliance and Idea, to develop guidelines on telecom gear sourcing.
As part of the proposed guidelines, all foreign equipment suppliers would be required to register with the DoT, agree to be monitored by security agencies and obtain clearance from the Home Affairs ministry, SCMP.com said.
Local operators, many of which regularly source gear from Chinese vendors Huawei and ZTE, reportedly fear that equipment costs would increase if the ban were enforced.
“Huawei has not received any notification of a ban and we remain fully committed to cooperating with all of our operator customers and the government in India,” Thong Poh Wah, vice director of Asia Pacific marketing, told telecomasia.net.
“Huawei has a strong record of service to telecoms companies in India... due to the trust of the many operators that we serve.”
Analysts quoted by SCMP.com estimated that Huawei and ZTE share around 20% of India's telecom equipment market, and that India accounted for 11% of Huawei's revenue in 2008.