India’s telecom equipment landscape could see the entry of several smaller manufacturers in the coming years. The government has extended the Pro Tem Certification Scheme, which is expected to significantly lower entry barriers for micro, small and medium enterprises (MSMEs), potentially adding 800–1,200 new players to the sector over the next two years.
The Pro Tem Security Certification Scheme is a regulatory reform that gives telecom vendors the leeway to deploy products without certification while their formal security testing is in progress. The government has also announced a significant reduction in application fees for TSTLs (Telecom Security Testing Laboratories), and simplification of security assurance requirements for ONT (Optical Network Terminator) devices. Taken together, these reforms reduce entry barriers for MSMEs.
Understanding the Pro Tem Security Certification Scheme
The Pro Tem Certification Scheme allows manufacturers of telecom equipment to deploy products in commercial networks even while formal security testing and compliance certification is ongoing/pending clearance.
Companies submit a self-declaration of compliance with most of the security requirements under the ITSAR (Indian Telecommunication Security Assurance Requirements) and then submit the product for testing at a TSTL (Telecom Security Testing Laboratory). The ITSAR requirements are set by the National Centre for Communication Security (NCCS) under the Department of Telecommunications (DoT) to ensure safety against threats to critical telecom infrastructure.
The Pro Tem Security Certification extension
Pro Tem Certification Scheme was introduced in October 2024 to help make things smoother for the telecom industry, which otherwise, had to get security certifications for equipment as of 01-10-2024. The aim was to prevent supply chain and business process disruptions for critical equipment like IP routers and Wi-Fi CPE products, which otherwise would be halted due to mandatory certification requirements.
Now, the government has decided to extend the Pro Tem Certification Scheme for another two years, running it continuously beyond January 1, 2026. This extension means that manufacturers can continue deploying compliant equipment even if their formal testing is
still in progress.
To help reduce compliance costs for vendors for testing and certification, the government also slashed TSTL designation applications fees by 50% for Indian startups, MSMEs and women-owned enterprises, and announced a complete fee waiver for central and state government testing agencies, government institutions, IITs and autonomous bodies.
How this benefits MSMEs
India’s telecom infrastructure comes with a large demand base. With 300,000–400,000 telecom towers undergoing equipment refreshes every 6–7 years, recurring annual demand is estimated at ₹15,000–20,000 crore. Currently, 85–90% of this spending goes to large global vendors. Pro Tem reforms could shift 25–35% of this opportunity (₹4,000–6,500 crore) toward MSMEs over the next few years. Plus, lower costs and faster market access could spark a wave of domestic innovation. Industry estimates suggest 800–1,200 new MSMEs could enter the telecom equipment space by 2027, translating into 15–25% sector growth.
- Accessibility and affordability: These measures are expected to make certification more affordable and accessible for small and mid-sized firms. According to experts quoted in the Economic Times, costs for certification per product category could fall from around ₹15–20 lakh to ₹3–5 lakh, dramatically lowering the financial hurdle for MSMEs to enter the market.
- Entry barriers reduced: High certification costs and lengthy timelines have traditionally favored large, established vendors with deeper pockets and resources. Reducing costs and allowing simultaneous deployment and testing makes the market more accessible to smaller domestic players. Reuters-style coverage suggests this could attract 800 to 1,200 new MSMEs into the telecom equipment ecosystem by 2027, representing an estimated 15–25% sector growth.
- Prevention of rollout delays: Telecom networks are critical to digital infrastructure, and delays in certification have previously slowed deployment of important technologies like 5G, broadband products and core network equipment. By allowing temporary deployment, the DoT aims to avoid such bottlenecks while maintaining the road to full security compliance.
The pros and cons
There are pros and cons to these changes for MSMEs.
- Domestic innovation vs global supply: On the one hand, it could level the playing field and encourage domestic innovation. Lower costs and faster time-to-market improve competitiveness against global equipment giants. On the other hand, the existing global giants in the market can game the system if they want to. Large foreign companies can easily afford testing, but may choose to delay permanent certification using the Pro Tem extension to roll out their products sooner.
- Security and risk: There is also the question of security threats. Extending Pro Tem flexibility could dilute the intent of ITSAR security standards. Allowing prolonged self-certification could make it easier for larger vendors to delay permanent certification, thereby circumventing the security objectives designed to safeguard the network.
What next?
Through these measures, the government hopes to strike a balance between faster and broader participation of domestic MSMEs in the telecom gear sector, and ensuring that security standards evolve in tandem, without cutting corners. This balancing act — of opening up the sector to more MSMEs versus maintaining quality and security — will be key in ensuring that innovation happens without undermining the security standards set by government agencies.
Sources
Extension of Pro Tem scheme to expand MSME base in telecom equipment sector | Communications Today
Pro tem extension may add 1,200 MSMEs to telecom gear space – The Economic Times