Foreign and Indian telecom equipment makers' differences over the proposed manufacturing policy have divided the industry body –Telecom Equipment Manufacturers Association (TEMA).
Multinational technology majors Ericsson, Nokia Siemens, Alcatel Lucent and Qualcomm have written to the association expressing objections to the recent statements made by TEMA on promoting Indian products.
“You have mentioned about potential security issues with telecom equipment supplied by foreign manufacturers. We being a member of TEMA have neither been consulted nor shared with any facts related to this subject,” the four foreign companies said in a joint letter to TEMA.
The infighting in the industry body came to the fore during a recent meeting wherein there were heated exchanges between the TEMA office-bearers and the multinational companies.
When contacted TEMA officials denied knowledge about any such meeting but admitted that there were differences of opinion with regard to the manufacturing policy. “In any industry, there are bound to be differences but it must be understood that TEMA's agenda is to promote domestic manufacturing and creation of Indian IPR. Some of the foreign players are not even members of TEMA,” said Mr Ashok Aggarwal, Director General, TEMA.
The Telecom Ministry is working on a policy which may mandate telecom companies to buy certain percentage of their network equipment from Indian manufacturers. The policy also envisages value creation on Indian shores which could force foreign players to transfer their IPR to Indian units. Foreign players have objected to this policy and have raised WTO norms in a bid to block it.
On the other hand, TEMA has been vocal in its support for the policy. “We feel that it is time for the Government to initiate tough measures so as to bring the manufacturing sector to a level wherein we become self-reliant and a telecom equipment exporting nation with a special focus on promoting telecom equipment designed, developed and manufactured in India,” Mr Aggarwal was quoted in a recent press release.