Direct spectrum allocation for enterprise 5G not tenable in India: Telcos
5G
captive non-public network (CNPN) is not tenable in the country due to revenue loss and potential national security aspects.
They added that all enterprise 5G needs must be fulfilled by licensed telecom carriers via
spectrum leasing
or network slicing to ensure national security, revenue protection, and regulatory parity.
The
Cellular Operators Association of India
(
COAI
), which represents
Reliance Jio
,
Bharti Airtel
, and
Vodafone Idea
(Vi), said it is misleading to state that setting up private networks independently would be cheaper for enterprises, given that such networks entail significant capital expenditure (capex), spectrum management, security, and skilled personnel.
'Unlike TSPs, most enterprises do not have the expertise or scale to manage telecom infrastructure efficiently. What appears cheaper on paper could turn out to be more expensive and operationally burdensome in practice,' said SP Kochhar, director-general, COAI.
"COAI firmly believes that the private networks managed by unlicensed or foreign entities raise serious national security concerns as these players are not bound by the same compliance, interception and regulatory obligations as telecom service providers," Kochhar added. "Without robust domestic oversight, this could expose India to cybersecurity, surveillance and diplomatic risks and set a dangerous precedent of allowing private service delivery without appropriate safeguards, investments or responsibilities."
His comments come after the Department of Telecommunications (DoT) ordered a fresh study—three years after an initial one—to assess the demand potential for setting up private networks through spectrum given directly by the telecom department to enterprises.
Back in 2022, more than 20 IT companies, including Infosys, Capgemini, Larsen & Toubro, Tata Communications, Tata Power, and Tejas Networks. However, the telecom department had later concluded that the device ecosystem was not yet ready to support the use case.
The method for spectrum assignment for
private 5G
has been hanging in a limbo since then, with regulatory uncertainty impacting the uptake of fifth-generation among various enterprise verticals.
The Broadband India Forum (BIF) had earlier drawn parallels with countries such as the US, Finland, Germany, the UK, and others, where private networks have been deployed by telcos. But COAI struck down this argument in its latest statement, reasoning that industries in these countries are located in remote or geographically secluded areas with limited public network coverage, which is not the case in India.
'In India, however, most industrial corridors and enterprise zones are already well-served by telecom operators, thereby leaving no coverage deficit,' Kochhar said.
'One must also consider the significant loss to the government exchequer in case of private networks as the national auction of spectrum generated ₹1.5 lakh crore in 2022 alone. Moreover, it would create an uneven playing field between TSPs and private entities who enjoy infrastructure benefits without comparable regulatory or financial obligations,' he said.
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