Demand for 5G spectrum among private enterprises weak: DoT survey
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The government's renewed push to allocate spectrum directly for private 5G networks has turned out to be a damp squib with just a few enterprises showing interest, people aware of the details told ET.A demand study conducted by the Department of Telecommunications (DoT) to understand the spectrum requirement for direct allocation attracted only a few applications, including incomplete ones that didn't have the requisite details, they said."We will study and take a call around direct allocation of spectrum for captive private networks," an official said on condition of anonymity. Telecom service providers have been opposing the move to give spectrum directly to enterprises, arguing that such private networks can be rolled out through airwaves allocated to telcos.The technology industry, on its part, is questioning the need for a fresh demand study as one such study was done a couple of years ago."Another demand study for private 5G seems a pointless exercise, serving only to further delay the introduction of a product globally proven with thousands of CNPN ( captive non-public networks ) and India trailing by three years," Broadband India Forum (BIF) president TV Ramachandran told ET."India needs CNPN for Industry 4.0, digitalisation and improved global competitiveness in many sectors," he added.The previous demand study drew applications from over 20 players including Infosys Tata Power , GMR, and Larsen & Toubro, but nothing much happened after that.This time, however, there was no such interest from these players.The DoT in June 2022 had notified guidelines for establishment of CNPNs or private networks. These guidelines allow enterprises to set up their own captive private 4G or 5G networks by either utilising spectrum from telcos or direct assignment from the department.The DoT felt there was a need for another demand study as certain spectrum bands that were initially identified for direct assignment to private networks lack device ecosystem."During a recent analysis, it was observed that the device ecosystem for CNPN is mostly available in IMT bands and 5G technology has also considerably advanced with different use cases," DoT said while seeking applications for the demand study. "Also, system integrators are keenly interested in establishing CNPN-based networks," it said.However, BIF felt demand for such a private network, for example, at Maruti , can only be singular because of relevance only to Maruti for internal efficiency improvements and a captive network with no services to the public and revenue therefrom."Hence, no need for demand study, or onerous license. Spectrum should be given directly to enterprises at cost to just cover the cost of administration and regulation and no further delay to boost the economy," Ramachandran said.Under private networks, corporate houses can set up their own Wi-Fi and data networks instead of taking the services from a telecom service provider as is the norm currently.The telcos, however, feel direct spectrum allocation to enterprises is not tenable because of various reasons pertaining to the country's telecom ecosystem, national revenue, and security architecture.
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