Originally thought that India will soon be resolved to block the issue of Chinese equipment manufacturers, and now renewed setbacks, the Indian government official to “blacklist” approach to the ranks of Chinese equipment manufacturers included in the ban.
Media reports said the Indian government has drawn up a list of suppliers of telecommunications equipment, and decided to rule in its new network security before the temporary ban list of the Indian telecom operators to buy equipment suppliers listed in the list, including Lenovo, Huawei, ZTE, FiberHome of 25 Chinese companies and an Israeli company Comverse.
Yesterday, the Chinese Embassy Economic and Commercial Counsellor Department confirmed the news.
Indian government blocked Chinese equipment manufacturers began in late 2009, the news side has always revealed by the Indian operators, equipment manufacturers ZTE and other Chinese local government has not been officially notified.
According to report, India is China’s equipment manufacturers of products may be in possession of the grounds of espionage equipment, “recommended” not to purchase Chinese equipment manufacturers in India of equipment, and only allows Ericsson, Nokia and other equipment manufacturers passed the safety review. Local media commented that the Government of India has been stressed before, there was no ban on the import of equipment for the country, but the “black list” of exposure to break that notion.
According to data from Huawei and ZTE, Huawei in 2008 in India’s total contract value more than 2 billion U.S. dollars, 1.3 billion in revenue, accounting for 11% of Huawei’s total revenue. The ZTE end of 2009, its revenue in India is about 750 million U.S. dollars, revenue accounting for about 9%.
It is not clear several other equipment manufacturers in the Indian market income share, but according to local media in India is estimated that since since February 2010, Indian mobile operators have with the 26 companies signed 450 orders, worth more than 2 billion U.S. dollars, but these orders were not delivered. Currently 27 orders are delivered with Ericsson, Nokia Siemens Networks and Alcatel-Lucent and other Western companies signed.
India has been banned since the incident, including Huawei, ZTE executives in China, including the Indian authorities has conducted a number of representations, and well in line with the Government of India requested to submit relevant information.
Meanwhile, India’s commitment to the telecommunications sector, all orders will be individually assessed, also issued a provisional specification, hoping to address China’s import of equipment related to security issues. In the interim specification, India operators can review their own system of certification and import of the decision device. Government of India has also introduced international security certification standards review organizations, to strengthen the review of the stringent safety equipment.
Not long ago, a Chinese equipment provider for the Indian market to accept “First Financial Daily” interview that he resolved to India’s ban on Chinese equipment manufacturers expressed optimism, I believe this issue will be resolved soon. He said the Indian government has begun to develop a more detailed security review of official documents, but when he can put on paper, and paper comes on the heels of the ban, said the concern whether the loose.
With the issuance of 3G licenses, the Indian telecommunications market is entering a new round of building heights, which is for the telecom equipment manufacturers a tremendous opportunity, if the Indian government’s ban on Chinese equipment manufacturers that delays in discharge, it will seriously affect China’s equipment business income in the year 2010, the scale and profitability.
CLSA predicted that “black list” will be ZTE’s revenue this year, the negative impact of 7%. Yesterday’s closing, Lenovo Group (00992.HK) fell 1.345 percent, ZTE (00763.HK) was down 2.066 percent.
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