Govt slashes security testing fees by 95% to boost local telecom manufacturing
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The telecom department Monday sharply slashed security evaluation fees for telecom and ICT products in a bid to make the security certification process more affordable for domestic manufacturers Security evaluation fees were reduced by as much as 95% which previously ranged from Rs 2-3.5 lakh depending on the equipment category. Under the revised structure, the maximum testing certification labs can charge is Rs 50,000, from an earlier Rs 3.5 lakh.This will significantly reduce financial strain on telecom and ICT manufacturers. The move is expected to positively impact the operations of Ericsson, Nokia, Cisco, and telecom equipment manufacturers such as VVDN and Dixon Technologies , said analysts.'This is a good step to spur innovation among local players. Earlier, each new product being developed locally had to be tested. With the fees rationalised, it becomes cheaper for us to innovate in R&D,' said Ashok Gupta, chairman, Optiemus Infracom , which makes telecom products including routers and set-top-boxes.Currently, products such as IP routers, Wi-Fi CPEs, and 5G Core SMF are under mandatory security testing, while Optical Line Terminals and Optical Networking Terminals are subject to voluntary certification.Gupta added that the security testing fees are added as part of the costs billed by the contract manufacturer to its customers, which was then passed down to the end-customer. However, security testing fees are only paid once when developing the product, and does not typically have a significant impact on final pricing, he said.The government has also exempted security test evaluation fees for its R&D institutes such as CDOT and CDAC until March 31, 2028 as part of a wider effort to encourage innovation in public sector research.'This fee reduction is expected to bolster the competitiveness of Indian telecom manufacturers, stimulate local innovation, and provide a more straightforward pathway to market entry for both domestic and international Original Equipment Manufacturers (OEMs),' the ministry of communications said in a statement.
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