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Huawei reconsiders India plans, says report

Posted: 25 Sep 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Huawei Technologies? CDMA? India facility? K.C. Krishnadas?

China's Huawei Technologies will abandon its application to India's Foreign Investment Promotion Board (FIPB) to implement local manufacturing of CDMA-based terminals, according to a report from The Business Standard in New Delhi last week.

Huawei, along with rival Chinese telecoms equipment company ZTE, will instead apply to the Reserve Bank of India for permission to invest in India directly, which is permitted for telecom manufacturing.

Considering that the Chinese companies' applications to the FIPB were not cleared owing to perceived security concerns, it is not known whether their revised applications through the RBI will go through. The Indian government may devise a law providing guidelines on investing in sensitive sectors such as telecom, the report said, adding that National Security Exception Act covering such proposed investments is being drafted.

- K.C. Krishnadas
EE Times

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