Government evaluates replacement of legacy Chinese telecom gear
India is examining a possible "rip and replace" programme to remove older Chinese telecom equipment from its cellular networks, with authorities seeking details from telecom operators on the extent and potential cost of such a move, according to government sources and officials.
The exercise is being carried out on behalf of the Ministry of Home Affairs (MHA), with the Department of Telecommunications (DoT) collecting information from service providers about their use of equipment supplied by Chinese manufacturers, including Huawei and ZTE, as reported by Moneycontrol and Free Press Journal.
An official told Moneycontrol on condition of anonymity that the trusted source regime came into being around 2021, but prospectively, and legacy equipment older than that is what the US and the West refer to as 'rip and replace'. The official added that a decision to replace such equipment would be taken by the home ministry.
The review focuses on equipment installed before India introduced its trusted sources regime in 2021. The National Security Directive on the Telecommunication Sector established the framework in June 2021, under which telecom operators were required to procure equipment from approved or trusted sources. Equipment deployed before the rules came into effect was allowed to remain operational.
The government is now seeking to determine how much such legacy Chinese technology remains embedded in telecom networks. Officials said the information would help the MHA assess what a potential replacement programme could involve and how much it would cost telecom operators.
Cost and compensation considerations
Replacing legacy equipment would require significant capital expenditure by telecom companies, and industry participants could seek compensation if the government ultimately mandates removal of equipment that was legally deployed before the trusted-sources framework came into force, according to officials cited by Free Press Journal.
An official told Moneycontrol that the industry would expect to be compensated for removing Chinese equipment, and that the MHA wants to know the cost to telcos if they replace that equipment. The official said the MHA is interested in evaluating what a 'rip and replace' initiative might look like and what it might cost, and that the ministry keeps asking DoT for information about telecom service providers.
Industry estimates put the potential cost of removing Chinese hardware and software from the Airtel and Vodafone Idea networks at up to $3 billion, according to Moneycontrol. Queries sent to Bharti Airtel, Vodafone Idea and DoT did not elicit any response, the outlet reported.
The initiative remains at an evaluation stage, and no final decision has been taken on whether a nationwide replacement programme will be implemented, according to Free Press Journal. The Home Ministry would have the final say on any "rip and replace" policy, while the DoT's role is primarily to provide information and support the assessment, officials said.
Context: trusted sources regime and international precedents
The trusted sources framework, introduced under the National Security Directive on the Telecommunication Sector, requires telecom service providers to procure equipment from vendors approved as trusted sources for designated products and networks. Huawei and ZTE have not received trusted-source approval, effectively preventing them from supplying new equipment to India's 5G networks. However, their legacy equipment remains in use in parts of 4G and fixed-line networks, according to Moneycontrol.
The two Chinese vendors have been supplying equipment to Indian operators, including Bharti Airtel, Vodafone Idea and state-run BSNL, the outlet reported.
India's consideration of a replacement programme follows similar actions in other countries. The US Federal Communications Commission launched a 'rip and replace' initiative to reimburse eligible operators for removing equipment deemed to pose a national security risk, while the UK banned the purchase of Huawei 5G equipment and said any such gear installed must be removed by 2027, as noted by Moneycontrol.
The review reflects the government's continuing focus on telecom network security and supply-chain risks, particularly in infrastructure considered critical to national communications, according to Free Press Journal.