Telecom Regulatory Authority of India<\/a> (TRAI) has recently proposed granting direct access to spectrum for companies, enabling them to set up private 5G networks independently, according to Indian press reports.<\/p>\nThis proposal generates optimism among corporations such as Infosys, Tata Communications and Larsen & Toubro, that have been advocating for the possibility to establish their own dedicated 5G networks without relying on telecom operators.<\/p>\n
Industry analysts suggest that if the government approves TRAI\u2019s recommendation, enterprises could deploy private 5G networks at significantly reduced costs compared to leasing spectrum or using telco-provided services.<\/p>\n
Last week, TRAI made a recommendation for a distinct authorization framework under Section 3 of the Telecommunications Act, 2023, allowing captive non-public network (CNPN) providers to establish, maintain and expand private networks for businesses.<\/p>\n
Section 3 of the Act permits the administrative allocation of spectrum for sectors such as defense, disaster management, broadcasting, in-flight and maritime connectivity and other critical industries, including mining and oil exploration.<\/p>\n
However, legal experts noted that the Department of Telecommunications (DoT) has yet to formally implement Sections 3 and 4 of the Telecom Act, which address spectrum allocation and authorization.<\/p>\n
If accepted, TRAI\u2019s proposal could accelerate enterprise 5G deployments, an area that has so far seen little traction in India. According to data from the Global Mobile Suppliers Association (GSMA), India currently has only 10 private 5G networks, compared to over 170 in the United States and more than 50 between China and Germany combined.<\/p>\n
\u201cTRAI recommendations, if accepted by the government, will be a game changer as we have more than 10 domestic design-led players who can take up the projects\u2026 there is demand for above 10,000 projects,\u201d said Rakesh Kumar Bhatnagar, director-general of the Voice of Indian Communication Technology Enterprises (VoICE). \u201cMany players need not be at the mercy of licensed service providers.\u201d<\/p>\n
However, Indian telcos including Bharti Airtel, Reliance Jio, and Vodafone Idea, have been opposing any move to allocate spectrum administratively rather than through auctions. These companies argue that such an approach would create an uneven playing field, as they are required to pay substantial amounts to acquire spectrum in competitive bidding processes.<\/p>\n
For telecom providers, enterprise services contribute significantly to revenue, amounting to around 20% of their overall income. Allowing enterprises to establish their own private networks could erode this revenue stream, as private 5G networks have been widely seen as a major monetization opportunity for telcos.<\/p>\n
Despite a 2022 Cabinet decision approving the direct allocation of spectrum to enterprises, progress has been slow. The DoT had initiated an exercise to gauge interest from companies in setting up private networks, with firms such as Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, and Tata Power expressing interest<\/a>. However, no significant action has been taken since then.<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"TRAI\u2019s proposal could accelerate private 5G deployments, an area that has so far seen little traction in India The Telecom Regulatory Authority of India (TRAI) has recently proposed granting direct access to spectrum for companies, enabling them to set up private 5G networks independently, according to Indian press reports. This proposal generates optimism among corporations […]<\/p>\n","protected":false},"author":1,"featured_media":109527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12020],"tags":[1846,5988,20598,11294,14939,49542],"dealstore":[],"offerexpiration":[],"class_list":["post-109525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-5g-technology","tag-access","tag-direct","tag-enterprises","tag-pushes","tag-spectrum","tag-trai"],"yoast_head":"\n
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