Airtel, Vodafone Idea jittery about Huawei’s gear supply

NEW DELHI: Vodafone Idea and Bharti Airtel are getting more and more jittery about sourcing gear from Huawei because the US tightens restrictions on the Chinese vendor, which can, over time, affect Huawei’s Indian supplies.

The two telcos, although, have sufficient provides to final one other six-to-nine months for his or her respective networks in India, even when provides from Huawei dry up.

“Itis certainly a worrying situation. In telecom gear, there are thousands of components and one has to be cautious about what part will be impacted as these times will put telecom gear into difficulties,” a senior Vodafone Idea government informed ET on the situation of anonymity. “We don’t know where it will stop as it is just a start”.

The newest flashpoint comes with Taiwanese Semiconductor Manufacturing Co (TSMC), the world’s largest contract semiconductor maker, reportedly stopping new orders from Huawei Technologies to adjust to US export controls. This might harm Huawei’s manufacturing and provide of telecom gear globally, together with to Indian distributors, provided that the Chinese firm depends on TSMC for a important chip for its gear.

The US alleges China makes use of Huawei to listen in on different nations, expenses that Beijing and the gear maker have strongly rejected. Analysts and market watchers say Huawei can’t actually construct telecom infrastructure with out TSMC as a foundry since there aren’t any seen alternate options.

“Everybody in India is aware of and watching the situation. We will have a plan B and C for sure. It won’t structurally impact the telco industry as it will surely be carrying out a plan B, if the situation arises,” the Vodafone Idea government stated.

Washington not too long ago imposed recent restrictions on Huawei’s potential to make use of American expertise and the Chinese firm’s India unit and different overseas subsidiaries in its export management entity checklist.

A Huawei government, who didn’t want to be named, downplayed its affect in India. “Neither does the Indian entity export nor import. So, there’s no impact as such on putting the India subsidiary into US’ export control entity list”.

Randeep Sekhon, chief expertise officer at Bharti Airtel, informed ET that challenge was extra geopolitical and impacts all industries, however that alterative suppliers can be found, if wanted.

Queries despatched to Huawei India and Vodafone Idea didn’t elicit any response.

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Tarun Banerjee

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