Won’t invest more if denied 5G permission, says Huawei

NEW DELHI: Embattled Chinese telecom equipment provider Huawei has said that it is ready to invest in an export oriented 5G manufacturing facility in India, but any expansion would be contingent on the government’s nod for its participation in the latest telecom technology.

Jay Chen, CEO of Huawei in India, said the company — which has invested over $3.5 billion in India till date — has made several presentations to various wings of the government on their 5G plans, including on issues related to compliance, data protection and privacy, but there has been no response so far.

“I guess they are taking time to address their concerns. But you cannot always think, think and think, but make no decision,” Chen told TOI.


He said the company is enthused by the government’s recent decision to cut corporate tax rates, with lower rates for new manufacturing units. “We are making 2G, 3G and 4G equipment at our Chennai unit. We are now studying the new manufacturing rates and policy. We are open to manufacture 5G equipment, and even look at exports… but if I am not allowed to participate in 5G here, then why would I have manufacturing here?”

The government is planning to start 5G trials soon, ahead of impending spectrum auctions, and has sought letters of interest from companies. Chen said that Huawei is ready to participate in trials — along with willing telecom operators — and showcase its technology.

A high-level committee on 5G is looking into the matter (allowing Huawei), and chairman of this panel had raised concern over Huawei’s participation, citing security concerns. Principal scientific adviser K Vijay Raghavan, who heads the committee, had said India should “go for (5G) trials immediately with all, except for Chinese vendors”. “For China, we should prepare pros and cons for going with them,” Raghavan had said at the June 13 meeting of the committee. There is no clarity on the final outcome of the deliberations.

“We have answered all the questions regarding our participation, and have clarified to all the departments when information was sought around various issues,” Chen said.