A renewed attempt by the Department of Telecommunications (DoT) to gauge industry demand for direct allocation of spectrum for private 5G networks has reignited tensions between telecom operators and technology companies. The move is expected to trigger a fresh round of lobbying as both camps vie for control over what is widely considered the most lucrative application of 5G technology.
DoT's Attempt to Gauge Demand
At the heart of the conflict is the question of who should control private 5G spectrum and its associated services. Telecom operators argue that they should retain exclusive rights to spectrum and offer private network services to enterprises either directly or through spectrum leasing arrangements. Technology firms and large corporations, however, are pushing for direct access to spectrum in order to build and operate their own captive private 5G networks.
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Telcos Push Back
"Telcos will seek to maintain their market dominance and aim to monetise their 5G investments, while enterprises will seek direct control for operational efficiency, security, and innovation tailored to their specific use cases," an industry executive was quoted as saying in an ETTelecom report.
The DoT has initiated a fresh demand study—three years after its initial assessment—to evaluate the current ecosystem's readiness. The first effort in 2022 attracted interest from over 20 firms including Infosys, Capgemini, GMR, L&T, Tata Communications, and Tata Power. However, the DoT had then concluded that the device ecosystem was insufficiently mature to support private networks.
This time, telecom operators remain firm in their opposition. The Cellular Operators Association of India (COAI), which represents private telcos Bharti Airtel, Reliance Jio, and Vodafone Idea, has warned that direct allocation to enterprises could lead to spectrum fragmentation and allow unregulated entry into commercial telecom services.
"During the time of spectrum auction, the quantum of spectrum and its valuation were benchmarked, keeping in mind that the licensed access service providers of networks will be meeting the demands of private 5G spectrum by enterprises," COAI Director General S P Kocchar was quoted as saying.
Kocchar reportedly added that direct allocation of spectrum to enterprises will result in spectrum fragmentation and allow back-door entry to enterprises in providing commercial telecom services without regulatory or financial compliances.
Tech Firms Cite Global Models for Private 5G
On the other hand, tech companies and industry bodies like the Broadband India Forum (BIF) argue that global precedents support direct allocation. BIF, which counts Facebook, Google, Cisco, Amazon, Microsoft, and Intel among its members, cited successful private 5G models in countries such as the US, Germany, the UK, Finland, and Australia.
According to the report, BIF President TV Ramachandran said there is clearly a lot of demand from the industry for private 5G, not for making calls, but for critical applications like industrial automation, healthcare services, and logistics solutions.
"These applications require very high levels of non-failure requirements and reliability, and need low latency and strong security, which enterprises believe are best ensured through dedicated networks or direct control," Ramachandran was quoted as saying.
Private networks, he reportedly said, would require very small allocation of spectrum, often just around 100 MHz, within a limited campus for internal use, which would not impact public networks.
Tata Communications Flags Regulatory Delays
Tata Communications CEO Amur Lakshminarayanan reportedly said the government's delay in allowing direct allocation has slowed adoption of private 5G. "Originally for private 5G to take off, we had advocated that enterprises should be given spectrum privately for limited use for their areas and that would have accelerated some people to try it out," he said. Currently, the company (Tata Communications) has to approach another company—likely a telco—which already holds spectrum for trials with enterprises, as a stopgap solution.
"The ecosystem has to develop and the government has to make sure that it becomes affordable for people to implement private 5G, which is distinct from public 5G which mobile operators are deploying on a large scale," Lakshminarayanan was quoted as saying.
Ecosystem Maturity
DoT, in its latest analysis, highlighted that the device ecosystem for captive private networks is mostly available in the IMT band, which is used for mobile telephony services, and that 5G technology has also considerably advanced with varied use cases.
The government has invited enterprises with net worth over Rs 100 crore and system integrators interested in establishing captive networks to participate. The last date of submission was July 31.
