Government’s FDI call may deter telcos from sourcing 5G gear from Chinese vendors: Analysts

The government’s decision to monitor foreign direct investment (FDI) deals from China may make Vodafone Idea and Bharti Airtel wary about any deep engagements with Chinese vendors, Huawei and ZTE for 5G gear procurements when the fast broadband technology arrives in the country, say telco executives and industry experts.
But in the near term, the two telcos are unlikely to overhaul network gear procurement plans immediately as there are no curbs around equipment sourcing from Chinese suppliers, they added.
They said VIL and Airtel — who source a sizeable chunk of their present 3G and 4G gear needs from Chinese vendors – may gradually choose to de-risk fresh 4G and future 5G gear procurements by opting to buy from non-Chinese suppliers such as Ericsson, Nokia and Samsung to minimise business risks and supply disruptions.