Rumours of a possible takeover of Nokia by Chinese technology major Lenovo has officials at the Ministry of External Affairs worried. The Ministry has asked the Department of Telecom to investigate the impact of this acquisition on the security of telecom networks.
“In view of the fact that the business activities of Chinese telecom majors like Huawei and ZTE in India have come under the scanner of various domestic agencies in recent months, you may like to monitor further developments,” a note sent by the MEA to the Ministry of Home Affairs, the Department of Telecom (DoT), and the Department of Commerce and Industry stated.
Rumours that the Chinese computer-maker was interested in buying the Finnish handset manufacturer had surfaced around August. While Nokia had declined to comment on the alliance, Lenovo had termed the report a “joke.”
But the MEA wants the security agencies to keep a watch on the developments. “The likely consequential change in the ownership and control of its sister concern, Nokia-Siemens Networks, a major supplier of telecommunication equipment in India, could be a matter of concern for our security,” the MEA note stated. When contacted, a senior DoT official said the MEA’s concerns have been noted, but since Lenovo has dismissed the rumour no action required.
In any case, it is not clear what the Indian authorities can do even if the deal does happen. Both Huawei and ZTE continue to do business in India though security concerns around the Chinese firms have been raised from time to time. The DoT had earlier unofficially told telecom companies to stop buying from the Chinese firms; this condition was later relaxed under diplomatic pressure. The DoT then introduced a guideline for importing telecom network equipment, but this applied to all foreign vendors.