Voda Idea orders Rs 200 crore to Chinese company ZTE know about the deal

Telecom service provider Vodafone-Idea (Vi) has ordered network equipment worth about Rs 200 crore from Chinese company ZTE. PTI has given this information by quoting 3 sources having information about this development. Sources have said that Vi has placed orders with a Chinese company for providing broadband network equipment in the telecom circles of Gujarat, Maharashtra and Madhya Pradesh-Chhattisgarh. A source said that ‘Vodafone-Idea has placed an order of around Rs 200 crore on ZTE.’

The source also added that the matter has been brought to the notice of the National Security Council Secretariat (NSCS), which manages the trusted telecom portal and approves permissible telecom equipment. An e-mail sent to Vodafone-Idea in this regard did not elicit any response, reports PTI.

Sources also informed that the order has been placed for Gujarat and MP-Chhattisgarh circles. A source also informed that the order has been placed for the Maharashtra circle as well. Significantly, on 16 December 2020, the Cabinet Committee on Security had approved the National Security Directive in the Telecom Sector. Accordingly, service providers have to procure equipment from trusted sources only. Under the provisions of the Directive, the Government declares a list of products for telecom network installation.

All work is done through trusted telecom portal. The list of products is decided based on the approval of a committee headed by the Deputy-National Security Advisor. Following this directive, Chinese companies have not been able to secure orders for 5G telecom gear. Significantly, from 5G to broadband internet, Jio and Airtel are rapidly spreading their legs. Voda-Idea is still lagging behind both the other rivals. It is expected that after the new work order, she will move fast in this sector.