4G spectrum: Telcos buying equipment from Chinese vendors like Huawei, ZTE may be barred from upcoming auction

After imposing restrictions on public procurement from China and other countries that share borders with India, the government is considering to extend it to private companies where they acquire public assets on lease basis.

This is being considered in the case of spectrum which is auctioned by the government and bought by private telecom operators. Once finalised, private telecom operators such as Bharti Airtel and Vodafone Idea may not be able to buy telecom equipment from Chinese vendors like Huawei and ZTE.

The proposal being considered is that since spectrum is a public asset and is auctioned by the government to private players, the government is very much within its rights to impose restrictions, which it imposed last week on public procurement. These restrictions do not apply to procurement by private companies otherwise.