Samsung has is reportedly planning to locally manufacture its 4G and 5G gear in India. The company has conveyed its stance to the telecom department and is looking to apply for the next edition of the production-linked incentive (PLI) 2.0 scheme for network equipment. It is currently in talks with Reliance Jio and Bharti Airtel for 4G expansion and 5G supply contracts.
According to a new report by DigiTimes Asia, the company is currently in talks with Bharti Airtel and Reliance Jio to indigenously produce 4G and 5G products in the country. The report also states that the company has informed the Department of Telecommunications (DoT) that it is looking to be a part of phase 2 of the country’s PLI scheme. It has written a letter about the same to the Indian government.
To recall, the company had decided not to take part in the PLI scheme for network equipment last year. It had said that it wasn’t a viable option to set up a network equipment plant in India with just one client.
Earlier Samsung only had Reliance Jio as a client, but now with multiple players in the Indian telecom industry the company thinks that it is the right time to enter the local manufacturing market. Additionally, with the country looking to implement 5G tech very soon, it is a market that nobody would want to ignore.
The report also states that the company has conveyed to the DoT officials that it has sufficient capacity to meet the demand for Reliance Jio’s 4G market in its Vietnam, South Korea, and China plants. The company had already been importing equipment duty-free via the free trade agreement (FTA) route from South Korea and Vietnam.
Bharti Airtel is currently also looking to bring in new equipment partners over and above the existing suppliers including Nokia and Ericsson. Reliance Jio is also testing its own end-to-end 5G network equipment across the country. Samsung is also currently conducting 5G field trials with Jio. According to an earlier report by ET, Jio is open to adopting third party technology other than its own technology, for its 5G networks.