Telecom Lead Asia: Chinese telecom equipment providers
Huawei Technologies and ZTE Corporation in India are again in news for security
reasons, this time for their alleged connection with Reliance Communications.
Research and Analysis Wing (RAW), in a note to DoT stated
that these firms are allegedly helping Reliance Communications (RCom) to get
huge loans from Chinese financial institutions, according to The Hindu.
The loans are being provided by the Export Import Bank of
China, the China Development Bank and the Industrial and Commercial Bank of
China.
The note further added, Influential Chinese telecom
equipment makers Huawei Technologies and ZTE Corporation are understood to have
helped RCom to secure loans from the State-owned Chinese banks as RCom is to
buy $600 million worth of telecom gear from them.”
RAW pointed Huawei Technologies’ links” with the People’s
Liberation Army and the Ministry of State Security of China.
However, Huawei India refused such allegations as untrue,
baseless and malicious in intent. An official statement by Huawei reads,
Despite such continuous and repeated disinformation campaign over the past 12
years of its presence in India , the company has been serving India customers
and firmly committed to being India’s partner and contributor to the growth and
development of the telecom/ICT Industry in India,”
In 2010, BSNL, on security grounds, cancelled a contract
awarded to Huawei and ZTE for GSM projects in the northern and eastern zones in
India even though their bid was adjudged the lowest.
Huawei Technologies has recently decided to appoint an
Indian as the Chairman of its wholly-owned subsidiary in India and has taken
some Indians on the Board of Directors. ZTE also plans to revamp its five-member
board in India by taking more Indians.
Huawei and ZTE have been providing equipment to various
firms like Bharti Airtel and Tata Teleservices besides offering them easy
payment options for such purchases.
Recently, the
federal government of Australia banned Huawei from participating in
multibillion- dollar tenders to supply equipment to broadband network. Concerns
over cyber attacks originating in China were the main reason for banning
Huawei.
editor@telecomlead.com
