The Department of Telecommunications (DoT) has reportedly asked operators to voluntarily raise the use of indigenous equipment. This is for operators to increase the share of locally manufactured equipment in their networks, due to growing geopolitical uncertainties. If they fail to comply, a mandate will be issued with a fixed implementation timeline. If fully implemented, the move could impact foreign telecom gear makers, while benefitting domestic players such as Tejas Networks, HFCL, Sterlite and VVDN.
Earlier, a DoT standing committee had rejected the Telecom Regulatory Authority of India’s (TRAI) proposal to offer licence fee rebates to operators using local gear. The matter is being revisited, with the centre recognising the strategic need for self-sufficiency in telecom.
According to industry officials, operators have agreed in principle to the plan but with conditions such as competitive pricing and quality on par with foreign alternatives. The policy is expected to apply only to new equipment orders, avoiding costly replacements for financially strained operators.
