Equipment import row: CDMA operators warn of 3G rollout

NEW DELHI: With the government yet to announce guidelines for telecom equipment imports, the industry body Auspi said the delay may derail the 3G rollout process of some operators.

The umbrella body of the CDMA operators shot off a letter to telecom secretary PJ Thomas stating that in the absence of DoT permission to import equipments, augmentation of capacities and expansion of network are affecting badly.

"Some of our members have heavily invested in acquiring 3G spectrum, but the delay in permission for import of equipments may derail our the 3G rollout and business plans," it said. Auspi has also requested DoT to come up with a list of core equipments which would need prior clearance.

The controversy over security concerns regarding Chinese vendors has been rocking the telecom sector since the past few months. Though the government denies any blanket ban on import of telecom equipments and network gears from China, Huawei and ZTE complain that the government had not approved their deals in the past few months.

In the wake of security concerns raised by the home ministry over Chinese telecom equipments, DoT had said it would come up with a comprehensive list of core equipments that would require mandatory security clearance before placing purchase orders by any operator.

At a meeting held early this month between the DoT and the home ministry, it was agreed that equipment imports will be allowed immediately on the basis of the undertaking given by the operators. It was also clarified that the agreement would be mandatory for core equipments only and the list of these equipments will be finalised immediately.

"Though our members have already submitted undertakings to DoT, there has been no response from DoT so far on finalisation of the list of core equipments," Auspi said.

Auspi has further requested that operators who are willing to give the undertaking or have already submitted it may be given permission for import of equipments immediately.