State Owned Telecom Giant BSNL has banned Chinese Vendors Huawei and ZTE from bidding for its Rs 2,000-crore contract for supply of 55 lakh GSM lines for its Northern and Eastern zones. BSNL has confirmed that only three Western vendors — Ericsson, Nokia Siemens and Alcatel Lucent — can participate in the bidding process.

Indian Industrialist are not happy with the Government decision. As products from western vendors are much more expensive than Chinese vendors. According to Indian Government directive, equipments from Chinese Vendors can not be installed in circles that share international boundaries.

It seems to me that Government don’t trust telecom equipments from Chinese Vendors as it can use for hacking and surveillance purposes. But Since Indian President is on China’s tour it could be a setback for diplomatic negotiations

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