Chinese investments in Nepal’s telecommunications sector are worrying
Indian agencies. Security agencies have asked Indian outfits to take
counter measures.
According to an internal Government note, Zhong Xing Telecommunication
Equipment Company Ltd (ZTE) plans to build four high-technology data
centres for Ncell Pvt Ltd, a telecom company in Nepal. These
earthquake-resistant data centres, to be built at a cost of about $43.75
million, will be located at Biratnagar, Kathmandu, Hetauda and Pokhara.
“ZTE is one of China’s largest wireless equipment manufacturers and
network solutions providers and maintains close ties with the PLA
(People’s Liberation Army). It is increasing footprint, along with other
Chinese companies such as Huawei, and raises the possibility of
installing bugged equipment in Nepal’s telecommunication network. This
in turn could allow China to monitor data and voice traffic between
India and Nepal,” said the Government note.
New Delhi is planning to work through the Ministry of External Affairs
to take up the concerns with the Nepal Government. According to
Government sources, the Nepal Public Accounts Committee had opposed this
project.
In addition, the Indian side could also make its own investments in
similar projects in Nepal to ensure that communication networks between
the two countries are secure.
A niggling worry
While both ZTE and Huawei have repeatedly refuted these allegations,
such concerns keep cropping up time and again in different countries. A
recent report by the US House of Representatives Intelligence Committee
recommended that Huawei and ZTE be excluded from expanding their
businesses in the US because of cyber espionage risk and connections to
the Chinese government.
The Chinese vendors had dismissed the report as being based on rumour and speculation.
“We have to suspect that the only purpose of such a report is to impede
competition and obstruct Chinese ICT companies from entering the US
market,” Huawei had said.
Meanwhile, such concerns have put the Indian agencies also on an alert.
The Department of Telecom has been told to ensure that the Indian
operators comply with the security norms for importing all telecom gear.
In May 2011, the DoT had issued rules whereby operators are required to
test all imported equipment for spyware or malware before inducting it
into their network.(Source : thehindubusinessline.com)
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