Following the recent move by the department of telecommunications (DoT) to reassess spectrum demand for private 5G networks, the Cellular Operators Association of India (COAI) on Monday once again urged the government to avoid direct allocation of spectrum to enterprises for captive non-public networks (CNPN). The industry body, which comprises telecom service providers – Reliance Jio, Bharti Airtel, and Vodafone Idea — said such networks should be deployed only through licensed telecom service providers (TSPs) using spectrum leasing or network slicing.
Security and Revenue Concerns Raised by Telcos
COAI said direct spectrum allocation to enterprises could pose security risks, reduce government revenues, and create an uneven competitive environment. It said that the government earned about Rs 1.5 lakh crore in 2022 from the auction of spectrum to telecom operators. It warned that private entities with direct spectrum access could use existing infrastructure without facing equivalent regulatory or financial requirements.
Disputing International Models for Private Networks
It also argued that international comparisons with countries such as the US, Finland, Germany and the UK were not relevant in the Indian context. In those countries, private networks are often set up in remote locations where public network coverage is limited, COAI said. In India, most industrial hubs and enterprise zones already have adequate coverage from telecom operators.
SP Kochhar, director general of COAI, said private networks operating independently would face higher operational costs over time, given the capital requirements for deployment, spectrum management, network security and maintenance. He added that there could be interference with public mobile networks due to radio frequency spillover, and said that private networks operated by unlicensed or foreign entities might bypass lawful interception and compliance requirements.
“COAI strongly believes that all enterprise 5G needs must be met through licensed telecom service providers, via spectrum leasing or network slicing, to ensure national security, protect revenues, and maintain regulatory parity,” Kochhar said.
This the second time that the DoT is reassessing the demand by enterprises for direct allocation of spectrum. In June 2022, the DoT had introduced provisions for setting up private 5G networks, but did not allow direct allocation. Under existing rules, CNPN providers can either lease spectrum from licensed operators or obtain it directly from the DoT.
“The department has decided to assess a fresh demand for spectrum in various prospective frequency bands and carry out a demand survey, through the Saral Sanchar portal, to identify the prospective frequency bands for the direct assignment of spectrum for CNPN-based services,” DoT has stated earlier.