India is assessing whether legacy telecom equipment supplied by Chinese firms Huawei and ZTE should be “ripped and replaced” from existing networks. The government is seeking details from telecom operators on the equipment still in use and the likely cost of replacing it.
The exercise, being conducted on behalf of the Ministry of Home Affairs (MHA), could have major capital expenditure implications for telecom companies.
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Government Maps Legacy Chinese Telecom Equipment
The Department of Telecommunications (DoT) is collating information from service providers on equipment sourced from non-trusted vendors. This includes Huawei and ZTE. The goal is to determine how much such equipment remains in Indian networks and what it would cost to replace it with equipment from approved vendors.
The move relates to the National Security Directive on the Telecommunication Sector, introduced in June 2021. The trusted-source framework is applicable prospectively, i.e., equipment installed before the rules came into force could remain in networks.
Huawei & ZTE have not received trusted-source approval. They are therefore barred from supplying new equipment to India’s 5G networks. However, their older equipment continues to operate in parts of 4G and fixed-line networks.
Both companies have supplied equipment to operators including Bharti Airtel, Vodafone Idea and state-owned BSNL. Their role has since been restricted, although operators have continued to use some legacy systems and, in certain cases, have sought approvals for maintenance or specific replacements.
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Replacement Could Cost Telecom Operators Billions
The MHA is assessing what a wider “rip and replace” programme could look like and how much it would cost. The exercise is particularly significant because removing existing equipment would constitute additional capital expenditure for telecom operators.
Industry estimates cited in the report put the potential cost of removing Chinese hardware and software from the Airtel and Vodafone Idea networks at up to $3 billion.
The government has therefore sought information from operators to understand the financial burden. Any decision on whether to proceed would rest with the MHA, while the DoT is supporting the exercise. The trusted-products framework originated with the National Security Council Secretariat (NSCS), with the DoT providing regulatory backing through its licensing powers. Queries sent to Airtel, Vodafone Idea and DoT had not received responses.
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US and UK have Already Taken Similar Steps
India’s assessment comes after similar action in Western markets. In the United States, the Federal Communications Commission launched a “rip and replace” programme to reimburse eligible operators for removing and replacing telecom equipment considered a national security risk.
The UK has also banned purchases of Huawei 5G equipment and said installed equipment must be removed by 2027.
For India’s telecom sector, the immediate question is no longer simply whether legacy Chinese equipment can be replaced, but how much of it remains, how quickly it can be removed and who ultimately carries the cost. The government’s ongoing assessment will determine the scale of the next step.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
