updated 03:00 pm EDT, Fri April 30, 2010
India block hardware sales from Huawei, ZTE
India's government has ordered Huawei and ZTE from selling network hardware to domestic phone providers because it fears for its security, according to a Friday report. Two sources who wanted to remain unidentified due to the confidential nature of a leak said that Sistema Shyam Teleservices didn't get permission to buy telecom gear from the Chinese manufacturer. Similar requests from at least three other Indian phone carriers were denied as well.
India is the second largest cellphone market behind China, and is beefing up security regarding switches and routers. Industry analysts have believed this will raise the prices at Indian carriers, as Huawei and ZTE charge lower prices for their gear than other makers.
An official at India's Home Ministry said there is no blanket ban on Chinese hardware, but acknowledged that equipment is reviewed on an individual basis. Carrier Sistema also didn't get approval from the Department of Telecommunications to buy products from companies as large as Lenovo China but also smaller companies like Mobi Antenna Technologies, Zhongxing Xindi Telecom, and Leoch Battery.