Indian telecom operators are currently removing equipment made by Chinese manufacturers and replacing it with Cisco products, Sanjay Kaul, President, Service Provider Business for Asia Pacific and Japan at Cisco, has told the Economic Times of India. Additionally, Cisco is looking to expand its manufacturing facilities to a location in Southeast Asia, he said. The announcements could be a result of fear of Chinese spying or possibly another sign that relations between the two countries have worsened as of late.
“We need alternatives to China and every large company has been dependent on China for manufacturing. We do manufacturing in Mexico and Malaysia,” Kaul said, according to the publication.
The announcement follows searches of ZTE and Huawei earlier this year that were carried out by the income tax department in mid-February, according to media reports, as part of a tax evasion investigation. “During the search, taxmen reportedly took a look at various company documents related to financial dealings,” reported the Economic Times.
The raids triggered a sharp response from Beijing, which is “deeply concerned” about India’s “suppression of Chinese firms,” Gao Feng, spokesperson for China’s commerce ministry, said, according to the South China Morning Post.
Huawei built 4G networks for Bharti Airtel and Vodafone Idea in India, but it is increasingly being replaced by other OEMs in 5G deployments, according to the Economic Times, which noted the continuing India-China border tensions might be a possible reason.
At the end of last year, Huawei’s India CEO, David Li, recognized a barrier has emerged between the two countries when he urged India to have a level playing field to allow Huawei to contribute to the Digital India initiative. “I believe India should have a more open policy and should also welcome all the global players to contribute in this journey,” Li said, December 15, at ETTelecom’s Digital Telco Virtual Summit 2021.
These events could be seen as a result of relations between the two countries suffering recently. India and China, which share a 2,167-mile border, have been in a standoff since troops of both countries clashed in June 2020, killing four soldiers.
By J. Sharpe Smith, Inside Towers Technology Editor
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