NEW DELHI: Given India’s widespread telecom penetration, the need for enterprises to establish private 5G networks is virtually non-existent, telecom operators reiterated on Thursday.
The Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel and Vodafone Idea said Captive Private Networks or Captive Non-Public Networks (CNPNs), which are primarily required in geographically vast and sparsely populated regions where public telecom connectivity is limited or non-existent, do not really apply in the Indian ecosystem.
The statement comes days after the Telecom Regulatory Authority of India (TRAI) brought out its latest recommendations on network authorisations under the Telecommunications Act, 2023. TRAI has recommended a separate authorisation framework for CNPN providers under Section 3 of the Act, with the scope of establishing, maintaining, operating and expanding the networks for enterprises.
The Act allows the government to assign spectrum administratively to entities in defence, law enforcement, broadcasting services, disaster management, navigation, telemetry, in-flight and maritime connectivity, as well as for safety and operations of mines, ports and oil exploration, among others.
Adani Data Network, a unit of Adani Enterprises Limited, remains the only company currently has the permission to set up a private 5G network. The company had earlier said it plans to create a private 5G network for its operations, and establish a unified digital platform that will accelerate the Adani group’s digitisation of its core infrastructure. But it is yet to announce any progress on this front.
Telcos have consistently pushed back against private enterprises establishing their own captive 5G networks, arguing the endeavour will fail since entities from non-telecom backgrounds would not have the financial and technical know-how to set up private 5G networks.
On Thursday, COAI pointed out TRAI’s paper has vindicated this position.
“Though the licensing framework for CNPN was put in place in June 2022, the CNPN services have not picked up,” TRAI had said.
Telecom Service Providers (TSPs) are fully equipped to meet enterprise demand for 5G applications through advanced solutions such as spectrum leasing and network slicing within their existing public networks, to handle different types of traffic simultaneously, COAI said.
“This model ensures the efficient utilisation of a critical national resource while preventing unnecessary fragmentation of spectrum that would arise from setting aside dedicated frequencies for private captive networks,” it stressed.
Captive networks may struggle to keep pace due to the high costs associated with continuous technological refreshes, with “the risk of technological obsolescence being significant” for them, COAI said.
Back in 2022, the Department of Telecommunications (DoT) had published guidelines for the licensing and operation of private networks. The department believes allowing companies to establish CNPNs will support the development of new use cases for 5G in industries such as manufacturing, construction, healthcare and transportation.
The guidelines permitted enterprises to establish private 5Gs in multiple ways. TSPs may provide private 5G networks as a service to enterprises using network resources over public networks or network slicing, TSPs may establish private networks for enterprises using spectrum that they have acquired; or they can lease out spectrum to enterprises who can then establish their own networks.
Finally, enterprises can establish their own private networks by obtaining spectrum directly from the DoT. The TSPs are in support of the first three ways, but have continued to vehemently oppose the last way of setting up a private network. They maintain that all spectrum should be auctioned and this should apply to private non-telecom firms interested in setting up their private networks.
Source: Business Standard
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