Ericsson Balks at Source-Code Rule

NOON -- Ericsson AB (Nasdaq: ERIC) wants to be exempted from having to share its technology source code, a practice that could become a requirement in India under proposed changes to the country's Unified Access Services Licenses (UASL), reports The Economic Times.

According to the new amendments, operators will need to engage the services of international accredited network audit and certification agencies when importing telecom systems. As part of that process, they might need to hand over the source code of the technology being tested and certified for use in Indian carrier networks. (See India Clears Way for Chinese Imports.)

Ericsson is protesting against the sharing of source code and plans to place its code into an escrow account.

Since February this year, the Government has cleared only some equipment orders, citing security concerns. The issue will need to be resolved soon as the operators get ready to install and upgrade their networks for 3G and BWA rollout. (See Ericsson CFO: India Bottleneck Easing.)

It seems unlikely that Ericsson will be the only company seeking exemption from the proposed source-code rules.

— Gagandeep Kaur, India Editor, Light Reading

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