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Mobile companies will have to cough up $5 billion to upgrade their networks if they want to comply with the proposed security related norms for importing telecom gear.
The cost is primarily due to the Department of Telecom making it mandatory for mobile operators to set up location based services on their network.
This is being done to allow security agencies to pin point specific users' location to 50 metres of a cellular base station.
Though the operators raised concerns about the huge cost of implementing the policy in a meeting held on May 2, the DoT is going through with it on grounds that it is a matter of national security. The Prime Minister's Office has asked the DoT to notify the rules by May 31. Under the existing policy, the foreign equipment vendors are required to submit their source codes, equivalent to sharing IPR.
The proposed new rules have done away with the stringent measures on the vendors but has put the onus on the operators.
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