India Weighs ‘Rip and Replace’ Plan for Chinese Telecom Equipment
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By SANJAY SINGH
The DoT and Home Ministry are assessing Chinese equipment across Indian telecom networks, with replacement costs and the financial burden on operators emerging as key concerns.
New Delhi, October 13, 2026 — Chinese telecom equipment makers, which account for a significant share of the global telecom equipment market, are back on the Indian government’s radar, with New Delhi evaluating a potential ‘rip and replace’ initiative to remove Chinese equipment already deployed in the country’s telecom networks.
The Ministry of Home Affairs (MHA) and the Department of Telecommunications (DoT) are working to establish the extent of Chinese equipment used by Indian telecom operators and assess the financial implications of replacing it.
Chinese telecom equipment is reportedly almost 40 per cent cheaper than equipment supplied by Western vendors. Chinese manufacturers also offer longer, staggered payment terms, extending to 20 years or more in some cases. Western vendors generally charge higher prices and offer fewer discounts or financing arrangements at higher interest rates, according to telecom industry sources.
India’s proposed exercise follows similar initiatives in other countries. The United States implemented a ‘rip and replace’ programme to remove Huawei and ZTE equipment used by telecom companies. Germany, Denmark, the United Kingdom and Estonia have also restricted or banned Chinese telecom equipment in their 5G networks.
The Indian government is seeking detailed information from telecom operators about equipment supplied by Chinese vendors, including Huawei and ZTE, and the potential cost of replacing it. The exercise is being undertaken by the DoT and MHA, which will decide whether to proceed with a replacement programme.
The immediate focus is on equipment installed before India made it mandatory for telecom service providers to procure network equipment from approved trusted sources. Chinese vendors have not received the required certification, effectively excluding them from India’s 5G equipment market. However, the government had allowed Chinese equipment already deployed in existing networks to remain in service.
Reliance Jio, India’s leading telecom operator, has not deployed Chinese equipment, while Bharti Airtel, Vodafone Idea and state-owned Bharat Sanchar Nigam Limited (BSNL) have historically used equipment supplied by Chinese manufacturers.
Industry sources caution that removing Chinese equipment from India’s telecom networks would involve substantial expenditure. A key question is who would bear the cost: telecom operators or the government.
Indian telecom companies are already under pressure to monetise their investments in 5G network upgrades. They have also committed substantial capital to network modernisation and fibre expansion.
Replacing existing Chinese equipment could therefore add to their financial burden, making the cost-sharing arrangement a critical factor in any decision to implement the proposed programme.
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