Alliance ofPSUs pose threat to foreign telecom companies.

If BSNL and MTNL start buying telecom gear from ITI alone, vendors such as Ericsson, Nokia Siemens, Huawei, ZTE, Cisco, Alcatel-Lucent, NEC and Samsung will face difficulties in Indian mobile market.

There is already a move to buy locally made telecom equipments. The current move will add fuel to viability of the business, analysts said.

The positive aspect of the development is to strengthen the security of telecom networks without relying on foreign players' infrastructure.

Alliance ofPSUs pose threat to foreign telecom companies.