Indian Attempting to Promote Telecommunications Equipment
According to foreign media reports, Telecommunications Consultants India Limited (TCIL), a telecommunications consultant of the Indian government, is attempting to attract service providers in Angola, Gambia, and Mauritius to upgrade their networks using Indian telecommunications equipment to replace Chinese equipment.
TCIL has conducted market research in these three countries and has achieved initial success. Mauritius has decided to conduct a Proof of Concept (POC) consisting of three base stations on an island with a population of approximately 25000. According to media reports, POC will use Tejas Networks’ Radio Access Network (RAN) and Hybrid Optical Line Terminal (OLT) technology, Astra’s E-band radio, and the fusion core of C-DOT (Centre for Development of Telematics).
The deployment of Indian equipment suppliers in these countries will help them gain confidence and expand their presence in the global telecommunications market. India aspires to become an exporter of telecommunications equipment, and this move may be a crucial first step in this direction.
The state-owned BSNL is using the 4G core of C-DOT and the RAN of Tejas (now part of Tata Group). The service provider will also use the self-developed 5G SA core and RAN when switching to 5G next year. This deployment will provide the experience required for large-scale deployment and help them leave a mark on the global telecommunications equipment market.
Pricing issues
India has close relations with Mauritius, which may help India enter the country’s telecommunications market. Mauritius is a country composed of a group of islands in the Indian Ocean. On the other hand, Africa is a price sensitive market and one of the few regions that continue to use equipment from Chinese suppliers.
At the same time, several countries, including the United States, the United Kingdom, and Australia, have banned the use of equipment made in China. If Indian suppliers price their equipment correctly, they may also make progress in these markets.
However, it is difficult for Indian suppliers to offer more favorable prices than their Chinese counterparts. Firstly, manufacturing costs in India are still high, and secondly, Indian suppliers have not formed economies of scale, which can help them reduce costs.
This measure demonstrates the government’s serious attitude towards helping Indian suppliers gain market share in the global market. At the same time, the Indian government needs to promote the use of self-developed telecommunications equipment by its local service providers. Indian equipment manufacturers have recently requested the government to provide direct financial incentives to telecommunications companies to use Indian equipment and reduce imports. This will also help them achieve the scale they currently lack.