According to a report by The Times of India (TOI), ZTE, the Chinese government-owned telecom network provider, is currently engaged in discussions with Indian companies regarding the transfer of technology and designs. Additionally, the parties are considering the formation of a joint venture. This move comes in light of ZTE's aim to address concerns raised by the Indian government regarding security, which has led the company to consider a business freeze in India.

The Indian government has been increasing scrutiny on Chinese companies like ZTE and Huawei, especially due to the border tensions between India and China. In response to these concerns, ZTE is actively seeking an Indian partner to instill a "critical trust factor" in its operations. By forming a joint venture with Indian companies, ZTE hopes not only to continue servicing existing telecom and network clients but also to expand its business and attract new opportunities in the Indian market.

“ZTE has begun conversations with some credible Indian manufacturers, who it is looking to partner with, through a joint venture, for telecom and network business. The company is ready to transfer technology, engage in research and development and design, while the Indian partner would need to make investments for the manufacturing,” TOI quoted a source.

As per the reports, ZTE, the Chinese telecom network provider, has initiated discussions with prominent Indian contract manufacturers for a potential technology and design transfer. The talks are still in their early stages, and it remains uncertain whether this collaboration will evolve into a joint venture, as stated by the source to TOI.

Both Huawei and ZTE, once major players in India's telecom equipment sector, now find themselves on the periphery. The Indian government, like several Western countries, has become cautious about allowing equipment only from "trusted" sources due to concerns related to espionage and cyber threats.

For private network operators like Reliance Jio, Bharti Airtel, and Vodafone Idea, the government has implemented strict checks and norms for deploying telecom equipment. Chinese equipment is permitted for use only in cases where operators are maintaining or upgrading existing networks initially set up by these Chinese companies.

However, the prevailing trend leans towards indigenous equipment. Mobile operators are increasingly turning to European companies such as Ericsson and Nokia, along with Korean giant Samsung, for next-generation networks like 5G.

The shift toward indigenous equipment is evident even in state-owned companies like BSNL and MTNL, which were significant users of Chinese telecom network equipment, particularly from ZTE. These state-owned enterprises have now transitioned to entirely indigenous technology for their 4G upgrades. The networks are being developed by TCS and Tejas, companies owned by the Tatas, with the core being provided by the government's C-DOT.

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