Chinese equipment maker Huawei has raised concerns over the Department of Telecom’s move to exclude it from the list of companies with local manufacturing capabilities. The DoT’s list includes European vendors such as Nokia Siemens but does not mention the Chinese firm.
“Huawei India is dismayed and disappointed to learn that despite its sincere and earnest efforts to localise the manufacturing capabilities, its name does not figure in the list of domestic manufacturers circulated by the DoT,” Huawei said in a communication to the Cellular Operators Association of India, the industry body representing the interest of GSM players. Huawei wants COAI to take up its case with the DoT. The Chinese equipment maker, along with ZTE, has been at the centre of DoT’s policies related to domestic manufacturing.
Earlier, the Department had announced a detailed security guideline for importing telecom gear which was primarily aimed at the Chinese vendors. Now, the Government is formulating a policy to promote local manufacturing whereby 30 per cent of all procurement will be reserved for made-in-India products. Huawei is peeved that despite making significant investments in India, it has been left out of the list of domestic producers. In the letter to COAI, the company has claimed that it has set up a facility in Tamil Nadu in 2009. In 2011, Huawei communicated to DoT about its plans to invest $2 billion for expanding its footprint in India. The company makes equipment for wired broadband network and microwave radio modem. “It is pertinent to mention that many other companies may not be doing this activity in India but still they have been qualified as Indian manufacturer,” Huawei said.
Operators’ support
According to sources, telecom operators will support Huawei’s contention through industry associations. “Huawei has emerged a key equipment supplier especially for 3G services and, therefore, telecom companies will want the Chinese company in the market to keep the competition level high,” said a telecom company.