With 20 per cent of all 5G patents in the world, Huawei has grabbed 50 commercial 5G contracts globally. But it came under the scanner due to allegations of spying on behalf of the Chinese government.
"When it comes to security, we cannot take any chances," said NSAB member V. Kamakoti, without naming Huawei during a discussion on 5G in India at the Indian Council of World Affairs here on Wednesday.
Kamakoti, who is also a professor at the Indian Institute of Technology (IIT) Madras, pushed for indigenisation of technology to make the country secure in the 5G era.
However, during a question and answer session following his talk, officials from the Chinese Embassy in New Delhi, who were present at the event, pointed out that nobody has offered "concrete evidence" against Huawei.
"Risk is a risk whether it comes from A or B," Kamakoti said, while adding that in case there remains a vulnerability in the hardware or software, it could be exploited by anybody.
"Huawei holds some of the very interesting patents around 5G. They have some leadership. We cannot undermine that," the NSAB member said, even as he agreed that concrete evidence against Huawei was lacking.
Huawei India Chief Executive Officer (CEO) Jay Chen told IANS in June that the company was willing to sign a "no backdoor" agreement to ensure that its equipment could not be used for malicious purposes.
But China's National Intelligence Law from 2017 basically requires organisations to give access to any data when demanded, according to Kamakoti.
"They may be right from their perspective of national security. But that recent law could be one of the reasons why people across the world are raising concerns about the security of Chinese equipment," he said.
But this is not the first time that security concerns about Huawei's participation in India's 5G roll out was raised.
In June, India's Telecom Minister Ravi Shankar Prasad said that India has its security concerns over allowing Huawei to participate in the 5G network trial for 5G services.
The government has already formed a panel to decide whether to allow Huawei to participate in the 5G trials in the country.
Spectrum for 5G is likely to be auctioned in October and the 5G High Level Forum envisages the technology to be deployed in the country by 2020.
Briefing reporters on decisions taken by the Cabinet headed by Prime Minister Narendra Modi, Telecom Minister Ravi Shankar Prasad said the government will put in Rs 29,937 crore for revival of the two state-owned telecom companies.
The revival package includes raising of Rs 15,000 crore sovereign bonds and monetising Rs 38,000 crore of assets in next four years.
Also, voluntary retirement will be offered to employees to cut cost, he said.
He said BSNL and MTNL will be merged. Pending this, MTNL will act as a subsidiary of BSNL.
The Union Cabinet had last month approved a revival package for BSNL and MTNL which includes a voluntary retirement scheme (VRS) for their staff. The aim is to reduce the employee cost of the two companies by offering VRS to their staff aged 50 years and above based on the Gujarat model with some modifications.
The government has set January 31, 2020 as the last date for employees opting for VRS. It will give Rs 17,160-crore for VRS settlements and another Rs 12,768 crore towards retirement liabilities.
BSNL has 1.76 lakh employees, of which some 1.06 lakh are over 50 years of age. The telco is keen that 80 per cent of the employees should opt for the VRS.
MTNL has around 22,000 employees. BSNL's employee cost is 75 per cent of its total income and MTNL's employee cost is 87 per cent of its total income.
The financial health of both PSUs depend on the success of the VRS, the implementation of which would take a minimum of 90 days.
"The Minister on Friday met the boards of both BSNL and MTNL and conveyed to them that the scheme must be implemented with a proper dialogue with the employees, and by presenting them with questions and answers," sources said.
"He told the boards of the two PSUs that it was the finest VRS announced by any PSU, and BSNL and MTNL must be proactive to make it a success," said the sources.
Employees above the age of 53.5 years will get 125 per cent of their salary, which they could have earned in balance period of their service. Employees in the age bracket of 50 to 53.5 years opting for the VRS will get benefit in the range of 80 to 100 per cent of the remuneration to be paid in the balance period of their service. For employees currently more than 55 years of age, on opting for VRS, the pension will be commuted only when they attain 60 years of age (the current retirement age). For the employees, currently of age 55 years and less, on opting for VRS, the pension will be commuted in the sixth year 2024-25.
Prasad also asked the PSUs to take proactive measures to monetise their assets and complete everything in a time-bound manner. "He said there will be strict monitoring, and BSNL/MTNL will have to deliver," sources pointed out.