Connect with us

Broadband

Assembling imported parts not ‘Make in India’ says Broadband Forum

Published

on

NEW DELHI: Observing that assembling in India goes against the very principle of Make in India, the Broadband India Forum has criticized the decision to roll back import duties levied on mobile phone components and said this “is a step not in sync with encouraging manufacture of these items in India.”

BIF, a dedicated Forum with representation from Telecom Service Providers, Technology Providers, R&D and Chip Design Companies, System Integrator, Project Management, Service & Solution Provide, MSO and DTH, Satellite & VSAT Service Providers, in its appeal to the Communication and Information Technology ministry has requested immediate withdrawal of the import duty rollback on populated PCBs and phone accessories in the interest of ‘Design in India’ as these equipments provide maximum opportunity for design and R&D.        

In its recent Notification of 5 May 2016, the government decided to roll back import duties levied on components of mobile phones in the Union Budget 2016. The notification brought down the duty on chargers, batteries and headsets from 29 percent to 12.5 percent (at par with that of imported handsets) and lowered the duty on populated PCBs (printed circuit boards) to 0 percent from 2 percent (instead of raising it to 12.5 percent).

Advertisement

In ia note to the Department of Industrial Policy and Promotion and the Department of Telecom,  the BIF has highlighted that no entity will design and invest in R&D in India if the PCB continues to be imported from China at 0 percent (zero) duty in fully-manufactured form. Though the increase in duty on imported handsets by 12.5 percent has increased manufacturing intensity of mobile phones in India from 5 million/year (50 lakh/year) to 100 million/year (10 crore/year), the local value addition is hardly 1 to 2 percent. Therefore, increasing duty on populated PCBs is the next logical step.

BIF president T V Ramachandran remarked, “While the industry was hoping the government moved ahead with its 2015 initiative, this recent announcement has pushed the country back to the days of phone assembly, instead of progressing to a phased-manufacturing regime. This notification goes against the letter and spirit of the stated intent of the government, which is to gradually reduce the electronic imports and achieve ‘Net Zero Imports’ by 2020 under ‘Make in India’, as part of the Digital India action plan. Therefore, we request the government to withdraw this notification immediately.”

The mere assembly of PCBs in India will immediately increase value addition to 10 percent from the current 1 percent, with scope of increasing it further with investment in ‘Design in India’ and R&D. It will also raise the quality of jobs and prevent these moving to other markets (in case they provide better economic conditions than India), and encourage component manufacturing in India by enabling components to be consumed in India (most components used in mobile phones are housed in PCBs).

Advertisement

In its request, BIF also highlighted that India faces a unique challenge in terms of compulsion to encourage and initiate indigenous design and manufacturing or ‘Make in India’ with higher local value addition. Accordingly, it is imperative to work towards reduction of the exponentially increasing Import Bill for electronics/telecom equipment and services – an expense expected to surpass the oil import bill by 2020 (estimated at $ 400 billion).

 

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Broadband

Tejas Networks names Arnob Roy as MD and CEO, overhauls top leadership team

The Bengaluru-based telecom gear maker reshuffles its entire top team even as quarterly revenue collapses by 83 per cent

Published

on

BENGALURU: Tejas Networks is changing the guard at the top, and doing so at speed. The Bengaluru-headquartered telecom equipment maker has elevated Arnob Roy as managing director and chief executive officer, effective April 15, 2026, for a term running through to August 3, 2028, and in the same breath announced new appointments across operations and finance. The timing is pointed: the company is navigating one of the roughest patches in its recent history.

Roy steps up from his role as executive director and chief operating officer, a position he has held since March 2019. He brings more than three decades of experience in the high-technology sector across research and development, operations, and sales. His predecessor, Anand Athreya, resigned last year citing personal reasons and was relieved on June 20, 2025, leaving a gap at the top that has now been formally filled.

The numbers Roy inherits are sobering. Tejas posted a net loss of Rs 211.3 crore in the fourth quarter of fiscal year 2026, a near-194 per cent widening year on year from Rs 71.8 crore in the same period a year earlier. Revenue for the quarter collapsed 82.6 per cent year on year to Rs 333 crore, down from Rs 1,907 crore. EBITDA swung to a loss of Rs 118.2 crore against a profit of Rs 121.5 crore a year ago. The culprit is not hard to identify: Tejas has derived the bulk of its revenue from BSNL’s fourth-generation network project, delivered as part of a Tata Consultancy Services-driven consortium, and that roll-out is now winding down.

Advertisement

Roy, speaking during a post-earnings conference call with analysts, was candid about where the company has been. “The BSNL 4G network went live across 100,000 sites. We deployed our largest indigenous router networks in the country through the BSNL MAN network, as well as in the BharatNet Phase 3 network,” he said, adding that Tejas had also successfully rolled out its 400G and 800G DWDM equipment in domestic and international markets, and continued the deployment of what it describes as the world’s largest satellite IoT network through its vehicle tracking system solution.

The pivot to new revenue streams is already under way. Tejas has partnered with Japan’s Rakuten Symphony and NEC Corporation to push deeper into international markets, with several Open Radio Access Network trials ongoing, one of which concluded recently. The company is also diversifying across equipment categories and geographies to sustain momentum as the BSNL chapter closes.

To prosecute that strategy, Roy needs a full team around him. Preetham Uthaiah has been appointed chief operating officer, moving up from his current role as vice president of product management for wireless products at Tejas Networks. Uthaiah brings nearly 30 years of global experience spanning engineering, product management, and business development across India and the United States. Before joining Tejas Networks, he served as executive vice president of product management, marketing, and strategy at Saankhya Labs, and held senior roles at Tech Mahindra on both sides of the Atlantic. He holds an MBA from Arizona State University and a degree in electronics and communications from Karnatak University.

Advertisement

On the finance front, AVS Prasad has been approved as chief financial officer, effective May 16, 2026, succeeding Sumit Dhingra, who has resigned. Prasad, currently serving as finance controller at Tejas Networks, brings over 27 years of experience within the Tata Group across telecom, aerostructures, and defence. A company secretary and cost and management accountant by training, he has spent more than 15 years in senior finance roles including CFO and financial controller positions, with expertise spanning corporate finance, treasury management, regulatory compliance, internal audit, and governance.

New chief executive, new chief operating officer, new chief financial officer — all installed in a single move, at a moment when the company’s largest revenue source is drying up and the next chapter remains unwritten. Tejas Networks has placed its bets. Now it has to deliver.

Advertisement
Continue Reading

Advertisement News18
Advertisement
Advertisement
Advertisement
Advertisement Whtasapp
Advertisement Year Enders

Indian Television Dot Com Pvt Ltd

Signup for news and special offers!

Copyright © 2026 Indian Television Dot Com PVT LTD