A leading European telecom vendor Ericsson has raised concerns over the proposals like sharing of source code and unlimited liability among others, as part of security clearance of telecom network equipment.
"We are specifically concerned to see obligations such as escrowing of source code (which is proprietary information), unlimited liability, no right to decline should the regulation change and lack of right of the vendor to mutually agree on the process suggested," Ericsson said in a letter to Telecom Secretary P J Thomas.
Amid debate over security concerns relating to telecom equipment by Chinese vendors, the government is proposing to to amend licence of telecom service providers as part of security clearance by incorporating these clauses.
As per the proposed amendment, the Department of Telecom (DoT) has said for an Escrow deposit arrangement between the equipment suppliers and the telecom service providers will be formed wherein the suppliers shall keep all the information and documentation in relation to the supplies.
The information would include "without limitations, in respect to hardware, software, all source code, high level designs, detail design documents, listings and programmers note," it added.
The service providers shall have the right to use the escrow information, after its release, in order to use and maintain (including to upgrade) the software, to modify or have modified the software and to licence such modified software to or have it maintained by third parties.
Terming the draft agreement, currently under discussion with telecom operators, as "unjustly onerous", the Sweedish equipment maker said that in its current form it would hurt the growth of the telecom industry.
Many clauses have cost implications directly and solely referable to the vendors, which "in our view should be shared by the telecom service providers and work out ways on minimising such costs for the benefit of the industry and consumers."
Ericsson has also requested DoT to hold discussions with the firm to resolve the issue.
The government had earlier asked operators to take security clearance before buying any key telecom gear. Telecom operators had been complaining about the strict rule, which forced the DoT to be very selective in giving approvals for equipment purchase.