ZTE has obtained government security clearance to supply telecom gear to Vodafone Idea. This development could mark ZTE’s return to the Indian telecom market.
Previously, ZTE was banned from supplying gear to Indian telecom operators in 2020 due to security concerns. However, the US government has cleared ZTE of these concerns, and the Indian government is now following suit.
Vodafone Idea will benefit from the security clearance, as it will have more options for sourcing telecom gear. This clearance could help the company reduce costs amidst its financial difficulties.
The extent and timing of ZTE’s gear supply to Vodafone Idea remain uncertain. Nevertheless, this security clearance is a positive step for both companies and could contribute to the growth of the Indian telecom market.
According to the article, the security clearance was granted by the Department of Telecommunications (DoT) and is valid for five years. ZTE will be able to supply gear for Vodafone Idea’s 4G and 5G networks. However, there are conditions, including not using equipment or software made in or by China.
ZTE’s comeback in the Indian telecom market will be intriguing to observe. With a strong track record in the country, ZTE could become a valuable partner for Vodafone Idea. However, the security clearance will subject ZTE to close scrutiny, necessitating compliance with all government requirements.
