Govt redefines security sensitive telecom equipment

The government has redefined "security sensitive" telecom products in the run-up to implementing 100% domestic sourcing of such telecom gear.

In a bizarre round of policy-making , the department of electronics & IT (DeitY) says, "Electronic products with security implications are those which are necessary for protecting human, animal or plant life and health, apart from protecting the country's security interests," in an internal note, a copy of which was reviewed by ET.

The new clause will be at the heart of the final preferential market access (PMA) norms likely to be notified on April 20. The new definition of telecom products with security implications was discussed on April 8 during a closed-door interaction between communications minister Kapil Sibal and all major telecom industry bodies.

Over 90% of the telecom gear classified as security-sensitive comprises electronics. Telecom industry executives believe the final PMA norms, post-notification , could throw open a fresh can of worms since neither the telecom department (DoT) nor DeitY officials present in the meeting were forthcoming on the logic behind the reclassification of "security sensitive" electronics. A senior executive with a leading GSM operator, who was present in the meeting chaired by Sibal, said that the definition defied logic.

Another executive claimed the new clause in the final PMA norms could complicate matters and derail future telecom gear procurements by mobile phone companies. "This new definition of electronics with security implications is bound to complicate matters since the environment and health ministries will now be dragged into all future decisions on safety assessment of telecom gear, which could impede equipment procurement by licencees," said this executive who did not wish to be named.

The international business community and industry lobbies representing mobile phone companies in India have vehemently opposed the draft PMA norms which mandate sourcing of mainline telecom gear, deemed security sensitive, from Indian-owned companies between 2013 and 2020. They have also claimed India's insistence on 100% domestic sourcing of telecom gear on security grounds runs afoul of global trade laws and is at odds with its WTO treaty commitments.