The department of telecommunications (DoT), under oversight from the government of India, has reportedly recommended that Chinese companies such as Huawei and ZTE be kept out of setting up 5G infrastructure in India. According to CNBC-TV18, sources with knowledge of the matter at DoT has stated that a panel set up by the body has cited cyber security as the key reason for keeping Chinese players out of India’s 5G bid. However, officials within telecom companies reportedly said that no official communication has been made by DoT yet, on either the timeline of 5G spectrum auction in India, or whether Chinese equipment providers will be allowed to play a part in India.

According to sources, the DoT panel’s move stands in line with a newly instated government policy that seeks to restrict the participation of Chinese companies in government tenders. At the centre of this restriction is the Indian government’s unwillingness to allow remote access to critical network infrastructure to companies based in China, and as such, are suspected of having ties to the Chinese government. The sources also stated that DoT’s move is in line with India’s data localisation policy, in which case the government is prioritising Indian equipment players over their Chinese counterparts.