Indian telecom operators have received a huge relief from the Department of Telecommunications (DoT). Back in 2022, the point of direct spectrum allocation to enterprises had become a huge concern for telecom players. Enterprises were happy as they could take the spectrum and set up captive private networks, not just for themselves but also for other companies. But the telcos were very much against it. In the 5G era, captive private networks are going to be in huge demand, and if the enterprises directly got spectrum from the government, it would have been a huge loss for the telcos.
According to a recent ET Telecom report, the DoT has decided not to give spectrum directly to the enterprises for the set up of private networks. This is definitely going to hurt some major companies, such as Tata Power, GMR and more, who were looking forward to getting spectrum from the government. As per the report, looking at the current legal framework, DoT decided that it would not be a wise move to give the enterprises spectrum directly.
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The enterprises can either take the help of the telcos to set up captive private networks or lease the spectrum from them. This comes as a big relief for the telcos who are struggling with ways to monetise 5G networks. Note that the telecom department has not yet informed TRAI (Telecom Regulatory Authority of India) about its decision.
This decision is against the initial guidelines that the telecom department released last year. As per the guidelines, the enterprises, if they wanted, could take spectrum directly from the government to set up private networks. India will continue with the current framework of spectrum auctions for anyone who wants spectrum, and there will be no administrative allocation. It is interesting to hear that because this decision can also be a huge blow for the satellite companies who are looking for administrative allocation.
