Amending the licensing conditions for telecom companies, Department of Telecom has set defence and national security as one of the primary parameters for purchase of telecom equipment.
It has mandated operators to purchase equipment approved by it over concerns pertaining to national security.
As per the notification, starting June 15, telcos can use telecom products only from trusted sources and must take permission from the designated authority if they plan to upgrade their existing network using telecom equipment that has not been designated as trusted product.
The decision comes ahead of the planned rollout of 5G wireless service that requires large-scale deployment of optical fibre and towers.
The new norms also mean that the telecom companies will not be able to use equipment from non-trusted sources for the setting up or expanding of network to utilize the 4G spectrum that they bought in the recently concluded spectrum auctions.
The move could potentially make it more difficult for Chinese telecom equipment vendors like Huawei and ZTE to supply equipment to Indian telecom players in the future. The government-appointed authority is yet to finalize the list of approved vendors.