The Indian government is reportedly planning to bar China-based companies from providing any telecom equipment to state-run telcos Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).

As per industry sources, the Department of Telecommunications (DoT) is likely to cancel a 4G telecom equipment tender floated by BSNL and MTNL, soon, and rework it to keep out China-based vendors.

In addition to that, the government may also prohibit private mobile phone operators from using gear supplied by the likes of Huawei and ZTE.

The move will mark India’s first major economic reaction to the skirmishes on the border with Chinese troops.