ZTE seeks to partner with Indian firms to operate in India – reports

Chinese telecom equipment maker ZTE is looking to collaborate with Indian companies to circumvent the unofficial ban on Chinese vendors in the country, according to media reports.

The company believes that collaborating with an Indian partner will help it acquire crucial trusted source certification from the Indian government, allowing it to service existing customers as well as get new business. Media reports suggest that ZTE is open to technology transfer to address the Indian government's security and regulatory concerns.

There seems to be a subtle change in the administration's hardline stance as well, which might explain ZTE's recent efforts to re-enter the Indian market. Rajeev Chandrasekhar, India's minister of information technology, recently said: "We are open to doing business with any company anywhere as long as they are investing and conducting their business lawfully and are in compliance with Indian laws."

ZTE was shunted out of India's telecom market along with Huawei when the government prevented them from participating in 5G trials. The decision was taken due to tensions between India and China following clashes between both countries' troops on the border. The Indian government also banned several Chinese apps, including TikTok and Helo, from operating in the country as a result. Chinese telecom vendors have also faced tough environments in several other countries, including Australia, the UK and the US, amid rising security concerns.

Geopolitical tensions

Chinese vendors had a strong presence in India before geopolitical factors derailed their growth. Huawei and ZTE had close relationships with both private and government-owned telcos, with Reliance Jio being the only Indian telco which decided not to use any Chinese equipment in its network. The Indian administration, however, opted to develop and produce its own 4G stack once Chinese vendors were unable to sell their products in the country.

The Indian telecom gear market is now dominated by European vendors – Nokia and Ericsson – with South Korean tech giant Samsung also making inroads. The absence of the Chinese vendors reduced competition in the Indian market and possibly left telcos with no choice but to procure gear from the European vendors at a slightly higher price. While it is as yet unclear if the Chinese vendors would be allowed to operate in India, the telcos are clearly hoping for their return.

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— Gagandeep Kaur, Contributing Editor, special to Light Reading