In modern world technology has become the most important part of human life,
human cannot survive without technology. Through inventive mind and technology,
the human had developed smartphones, which makes the day to day life easy. In
present, China is one of the leading producers of cheap telecommunications
devices and electronic goods in the world.
China’s success in making globally competitive tele-communications firms has led
the Chinese government’s desire to hold its position in next generation
Information Technology (IT). China is the world’s one of the leading producers
of Internet of Things (IoT) devices. Although there has been rapid increase in
these IoT devices, yet there are shortcomings in these devices which has exposed
them to many vulnerabilities of intelligence, infringement with personal data
and cyber-attacks etc.
Shortcomings In Huawei
Chinese giant telecom company Huawei is the world’s leading producer of
electronic goods, but US government recently blocked Huawei products in US
market on the grounds of national security, this contention was made in
consideration of cyber security and hacking of foreign network.
There are security problems related to 5G network. 5G technologies are expected
to support interconnected or autonomous devices, such as smart homes,
self-driving vehicles, precision agriculture systems, industrial machinery, and
advanced robotics. In addition, personal data collected by thousands of IoT
devices could be stolen by malicious actors.
The severe security protections
and universal connectivity of IoT devices create chances of vulnerability that
hackers or malicious state actors can exploit to hold critical infrastructure,
businesses and individuals at risk.
What Is Its Impact In India?
India is under tremendous pressure from USA, and at the same time Chinese
government is also pushing Huawei in Indian telecom sector with 5G network
infrastructure. Evidently India is failing to resist US pressure on Iran and
Venezuela oil issue. USA has threatened 5G, Huawei and India, 10 drastic
reduction of H-1B visa to India if we go ahead with our data localisation
policy. All these are not good advertisement for India’s strategic autonomy.
If US does not support Huawei with Intel processor, android licensing will get
blocked and Huawei phones will have no access to Google Playstore and other
applications like Facebook, WhatsApp etc. This would not put major impact on
Indian telecom sector, however there will be increase in sale of phones which
having above applications access. Sale of substitute products will increase.
Effects on Indian Telecom Sector if US blocks support to Huawei; an Analysis:
There will be delay in instalment of 5G network infrastructure in the country
and then there will be higher cost of 5G deployment. Costly rollouts would make
5G services exorbitant to the consumers, it will possibly be limiting the
transformative impact of high-speed technology. Spectrum sales would also
There is huge investment of 2.5 Billion of Huawei Money in India market. The
company has considerable Indian employees working for it. If US blocks Huawei,
it will create huge impact on the Indian Economy. Economy will be evidently
denied the benefits of money of 5G investments. It will dastardly effect the
already dwindling employment sector. India is losing its man power. Educated
unemployed youth is a major concern which cannot be overlooked. Other Chinese
Companies will hesitate to invest money in India.
The people who have Huawei phone would suffer technical problems because
companies like Airtel, Vodafone and Idea are using Huawei gear.
India has not been very good in leveraging its market. It is important for India
to achieve the strategic objectives, the higher the stakes in the Indian market,
the greater the potential political leverage for India. In 2009, the State-run
telecom giant Bharat Sanchar Nigam Limited (BSNL), in spite of strong opposition
from the Intelligence Bureau (IB) and the defence ministry, awarded the contract
for telecom equipment to Chinese company Huawei for only southern states.
The idea given was that Southern parts of India does not share sensitive borders
with countries such as Pakistan, China and Bangladesh as they have no
international land borders. In today’s networked world this logic is weak. The
Huawei crisis must also be viewed from the border threat and disruptions of
systems during a bilateral crisis. The decision on what is the role of Huawei,
if at all, in building India’s 5G network infrastructure has to be taken after
conducting a cost benefit assessment, given the nature of the bilateral
India’s telecom sector players including the state owned BSNL to Reliance have
been using Huawei products and hardware for more than a decade because it is
considerably less expensive and the telecom companies get loans from Chinese
banks. The security concerns were always there. Now, banning Huawei product
would create huge impact on telecom sector of India.
These were the projected impacts which would have affected Indian Telecom Sector
drastically. A no-ban atmosphere has allowed some space to heal the bilateral
ties without effecting each other’s economy. It was a much-needed escape as it
allowed India to buy some time and fix its other economic issues. However, this
is not the end of this issue. It needs to be dealt with a critical approach
keeping in mind the economics of the country is at stake.
Huawei will not lose it easily. It will definitely put a stronger game by
boosting and making its system at par with other competing systems. Security
issues can be resolved and the contention for the proposed ban seems completely
politically driven. This attitude between countries will not only hamper
diplomacy but will also lead to greater losses for the common man. This issue
needs to be decimated carefully to see its effect on the common man.
In light of the views expressed, the authors conclude that, India-China
relationship is very complex with deep mistrust protected under the impressive
diplomacy by both the countries. India has fought a war with China. The land
boundary dispute between the two countries remains unresolved. China has
constructed road in Doklam which create tension between the two countries.
Chinese build up and construction activity, not just along the Line of Actual
Control (LAC) but also in sensitive regions such as the Doklam Plateau continue
despite the tense 2017 standoff.
China’s deep military ties with Pakistan along with it provides for Pakistan
based terrorists are testimonies of China’s intentions. Security concerns from
India’s perspective become important, to avoid this India’s telecom sector has
to make its own telecom giant to provide better telecommunication and telecom
But India does not have its own telecom equipment manufacturer. Security can
only be ensured by indigenous technology. For projects like Digital India and
Make in India much efforts in development of indigenous network equipment
capability are yet to be made.
By blocking the sale of Huawei India’s security concerns are not eliminated.
India should follow other countries. What the Europeans countries are doing and
how they developed their telecom sector can make India grow from its mistakes.
India has nothing to do in hurry. India should wait and not to get involved in
the matter and should not commit anything now in spite of extreme US pressure
and try to develop its own telecom sector. At present tactful handling of the
international relation and the art of diplomacy can alone save Indian Telecom
sector from suffering the projected losses. But now the USA has removed the ban
on Huawei products, it is available in the market.
- Hoehn, John R. Sayler, Kelley M., National Security Implications of
Fifth Generation (5G) Mobile Technologies, June 12,
- Maj Gen PK Mallick, 5G-Huawei and India, Vivekananda International
Foundation, July 2019, https://www.vifindia.org/sites/default/files/5g-huawei-and-india_0.pdf.
- Maj Gen P K Mallick, VSM (Retd), 2+2 Dialogue and Indo US Relations,
Vivekananda International Foundation, October 2018 available at: https://drive.google.com/file/
- Kalyan Prabhat, The Huawei challenge: Implications for Vodafone Idea,
Airtel; advantage Jio, June 28, 2019, https://telecom.economictimes.indiatimes.com/news/the-huawei-challenge-implications-for-vodafone-idea-airtel-advantage-jio/69983765.
Written By: Aditya Shekhar and Abhishek Choudhary - Institution-
National Law University, Jodhpur
Course- B.A. LL. B (Hons), Year of study - 2nd Year
Email address Co-Author- [email protected]
Email address of Co-Author- [email protected]