The National Security Council has backed the Department of Telecom’s proposed policy to encourage local manufacturing of telecom gear against the backdrop security concerns.
Citing a report from the Intelligence Bureau, which has warned against Chinese equipment manufacturers, the NSC has said that the best way to deal with the issue was to make sure that India speeds up the process for establishing manufacturing facilities within the country.
“There are IB reports on Chinese telecom majors such as Huawei Technologies and ZTE Corporation being part of the Chinese People’s Liberation Army 863 programme of 1986,” the NSC said in a paper titled ‘Security implications of foreign equipment in critical infrastructure’. “Huawei in fact is one of the biggest vendors in Pakistan. This heightens security concerns,” the paper added.
NSC said that though a number of countries, including the US and Australia, have blocked the Chinese vendors from supplying equipment, it may not be practical for India to impose any ban on any international player as it could lead to creation of monopolistic cartels in the market. Instead, it has proposed a two-pronged approach to deal with the issue including encouraging domestic manufacture of telecom equipment and strengthening measures to test and certify equipment to mitigate security vulnerabilities.
This is in line with the DoT’s proposed policy that makes it mandatory for equipment suppliers to set up local manufacturing units.
Screen equipment
According to the telecom department, the law enforcing agencies will be able to screen equipment for spyware if it is made in the country. But under this policy, even the European and American vendors will be forced to set up manufacturing facilities in India.
The Commerce Ministry has, therefore, raised objections on grounds that the policy would not conform to international trade treaties. The Prime Minister’s Office had also asked DoT to explain how it proposes to link security concerns with the go-local policy. This is despite the fact that the NSC falls under the PMO’s purview.
Indian law enforcement agencies have been expressing concern over the widespread use of imported equipment, especially from China. The primary fear is that Chinese agencies can embed spyware into these equipment which would not only allow them to snoop into conversations but also get the ability to shut down telecom networks in India. Companies including Huawei and ZTE have repeatedly denied the allegations of being spies for the Chinese government.
John Suffolk, Huawei’s Global Security Officer, had told Business Line earlier that the company was ready for verification by an independent agency.