Vodafone Idea, one of India’s leading telecom operators, has reportedly granted a network gear order worth around Rs 200 crore to Chinese company ZTE, according to three sources familiar with the matter. The order is for broadband network equipment in three telecom circles, namely Gujarat, Maharashtra, and Madhya Pradesh-Chhattisgarh (MP-CG), the sources said. One of the sources added, “Vodafone Idea has awarded an order of around Rs 200 crore to ZTE.”

The National Security Council Secretariat (NSCS) has been informed of the order, and it manages the Trusted Telecom Portal that provides clearance for permissible telecom gears. The matter is now being examined by the NSCS to ensure that the equipment meets the standards required for deployment in India’s telecom network. The NSCS manages the Trusted Telecom Portal, which ensures that only trusted sources and products are used for installation in the country’s telecom network.

Sources have indicated that the order is for the Gujarat and MP-CG circles, with one source stating that Maharashtra is also included in the order. The government’s National Security Directive on Telecommunication Sector, which mandates service providers to purchase equipment from trusted sources, was approved by the Cabinet Committee on Security on December 16, 2020. The directive requires all telecom equipment to be purchased from trusted sources, and the government releases a list of such sources and products for installation in the country’s telecom network.

The list of trusted sources and products is determined by a committee headed by the deputy national security advisor. This directive, however, does not affect annual maintenance contracts or updates to existing equipment already inducted in the network before the directive came into effect. Since the directive’s introduction, Chinese players have been unable to secure orders for 5G telecom gear.

According to an official source, an objection has been raised before the NSCS regarding the award, and the matter is under review. The NSCS will assess the issue to ensure that the equipment is in compliance with the standards required for installation in India’s telecom network.

In conclusion, the award of the network gear order by Vodafone Idea to ZTE has been brought to the notice of the NSCS, and the matter is now under review. The government’s National Security Directive on Telecommunication Sector requires that all telecom equipment be purchased from trusted sources, and the government releases a list of such sources and products for installation in the country’s telecom network. The directive does not impact existing equipment or maintenance contracts.