Chinese Firm ZTE Secures Rs. 200 Crore network deal with Vodafone Idea

30 Jun 2023 , 02:48 PM

The Centre has given approval for Chinese telecom gear maker ZTE to supply optical transmission equipment worth Rs 200 crore to Vodafone Idea (Vi) for network upgrade purposes, as reported by The Economic Times (ET).

ZTE and Huawei have both applied to the National Security Council Secretariat to be recognized as ‘trusted sources’ in order to qualify for new telecom network equipment contracts.

The ‘trusted source‘ designation is a requirement for companies to be eligible for such contracts. Vi’s network upgrade will specifically take place in the Gujarat, Maharashtra, and Madhya Pradesh-Chhattisgarh circles, where Huawei originally provided the equipment.

An official mentioned that Vi was eligible for exemption since it involves an upgrade of the existing network. Vi has informed the authorities about the deal and addressed any queries raised.

ZTE and Huawei have faced challenges in obtaining the ‘trusted source’ designation, with other companies such as Nokia and Ericsson receiving it ahead of them despite applying later.

The ‘trusted source’ designation involves thorough scrutiny by over ten ministries, including Home Affairs, External Affairs, and Information Technology, to ensure no security threats.

The ET report suggests that the Vi-ZTE deal could be the most significant one for the Chinese company since the 2022 clashes between Indian and Chinese armed forces in the Galwan Valley. ZTE and Huawei had refrained from pursuing the ‘trusted source’ designation as tensions between the two countries escalated. However, they have still managed to secure small contracts and provide maintenance services for Bharti Airtel and Vi’s 4G network.

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