The government on Wednesday amended the unified licence for procurement of telecom equipment. According to the amendments to come into effect from June 15, the licensee (operator) will only use ‘trusted products’ in its network and seek permission from ‘designated authority’ for upgrading the existing network.

The designated authority for this purpose will be the National Cyber Security Coordinator and, in this regard, the licensee will have to provide any information as and when sought by the designated authority, it said.

“However, these directions will not affect ongoing annual maintenance contracts (AMC) or updates to the existing equipment already inducted in the network as on date of effect,” the Department of Telecommunications (DoT) said in the ‘Amendment to the Unified Access Services (UAS) License Agreement (UASL) for procurement of telecommunication equipment’. It also added that this amendment will be part and parcel of the UAS License Agreement and all others terms and conditions will remain unchanged.

Background

BusinessLine on March 8 had reported that the DoT was expected to come out with amendments to Telecom License norms for procuring equipment within this week.

The Cabinet in December, had approved setting up of a National Security Committee, which will list ‘trusted and non-trusted’ telecom equipment/ devices by vendors (like Ericsson, Nokia, Samsung, Huawei and ZTE) to be used by the Telecom Service Providers (TSPs). If the telcos do not abide by the new rules, they would also attract a fine of ₹50 crore on each circle.

The main purpose of such a decision was to keep out Chinese vendors like Huawei and ZTE from participating in future telecom projects including the 5G technology, due to the continuing tensions at the border.

National security

According to the amendment, “The government through the Designated Authority will have the right to impose conditions for procurement of telecommunication equipment on grounds of Defence of India, or matters directly or directly related thereto, for national security.”

This Authority will notify the categories of equipment for which the security requirement related trusted sources are applicable. For the said categories of equipment, the Authority will notify the trusted sources along with the associated telecom equipment.

“The Designated Authority may also notify a list of Designated Sources from whom no procurement can be done. Procedure for inclusion of telecom equipment in the list of trusted sources will be issued by the Designated Authority,” it said.

Compliance a must

The DoT added that the licensees should comply with the guidelines for enhanced supervision and effective control of telecom networks, as per guidelines to be issued by the licensor.

According to Tony Verghese, Partner at J Sagar Associates, the amendment was an expected move in light of the 5G auctions.

“The recent incidents allegedly by Chinese hackers, has definitely hastened the process with the government inclined towards a new national strategy to strengthen security. Telecom equipment’s play a vital role in connectivity and data transfer, which has a direct impact on India’s national security. Therefore, such a policy decision, which definitely impacts significant market players, clearly conveys the government’s stand on national security,” he said.

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