DoT begins fresh demand study for direct spectrum for private 5G networks | Mint

In what could be a setback for telecom operators, the department of telecommunications (DoT) on Monday initiated a fresh demand survey to assess interest in assigning 5G spectrum directly to enterprises for setting up private networks. If approved, the move could allow large firms to bypass telecom service providers for high-speed, automated connectivity within their campuses and factories.

The demand study has also been undertaken by DoT to identify the prospective frequency bands for the direct assignment of spectrum for captive non-public networks (CNPN) based services. Notably, enterprises with more than ₹100 crore net worth, willing to set up CNPNs by obtaining spectrum directly from DoT, can participate in the demand study. Further, system integrators interested in establishing CNPN networks for such enterprises can also participate, DoT said in a notification.

The DoT clarified that the demand survey is being conducted to assess the demand for direct spectrum assignment to CNPNs, and participation in this exercise does not entitle the entities to any claim for spectrum assignment. 

This means that companies such as Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power and Tejas Networks, among others, will again have the opportunity to present their case for getting direct spectrum from the government to set up private 5G networks. In 2022, these companies were among 20 companies that had participated in a similar demand study by DoT for spectrum, primarily in the 3,300-3,670MHz band. However, the DoT did not act on these requests at the time.

On 24 June, Mint reported that the Centre was weighing the case for allocating spectrum directly to enterprises and will soon assess the demand for such dedicated networks.

“During recent analysis, it was observed that the device ecosystem for CNPN is mostly available in IMT (international mobile telecommunications) bands and 5G technology has also considerably advanced with different use cases. Also, system integrators are keenly interested in establishing a CNPN-based network,” the notification said.

No entitlement

“Certain frequency bands were initially proposed for direct assignment of spectrum to CNPN licensees. However, it was observed that there was a lack of device ecosystem in the frequency band identified for CNPN,” the notification added.

The DoT clarified that the demand survey is being conducted to assess the demand for direct spectrum assignment to CNPNs, and participation in this exercise does not entitle the entities to any claim for spectrum assignment.

A private 5G network, also referred to as a captive non-public network, is designed exclusively for an enterprise’s internal use.

Unlike public networks, private 5G networks operate in a closed environment, providing dedicated connectivity to industries such as manufacturing, healthcare, automotive and fast-moving consumer goods (FMCG). This ensures seamless automation and operational efficiency within factory premises and corporate campuses, free from interference from public networks.

Notably, the DoT will conduct the demand survey through the Saral Sanchar portal from 1 July to 31 July.

Low usage

Despite three years since the launch of 5G in the country, private 5G networks have not taken off. The reasons include higher costs, security concerns and the absence of compelling use cases such as the Internet of Things (IoT). Additionally, many enterprises have found that 4G networks and Wi-Fi solutions are sufficient for their automation and connectivity needs.

According to a February report by the Global Mobile Suppliers Association (GSA), India has only 10 private networks compared to 325 in the US, 101 in Germany, 65 in the UK, 55 in China and 43 in Japan. The association counts companies such as Apple, Intel, Ericsson, Nokia and Qualcomm as members.

There are 80 countries with at least one private mobile network, the GSA said in the report.

In 2022, the Telecom Regulatory Authority of India (Trai) offered four options for setting up private networks: using a telecom company’s network slice, purchasing private network services from telcos, leasing spectrum from telcos, or receiving direct spectrum allocation.

The DoT chose the first three in May 2023, opting not to assign spectrum directly. However, in February this year, Trai recommended creating a CNPN provider authorization under Section 3(1)(b) of the Telecommunications Act, 2023, which would allow enterprises to set up and run their own private 5G networks independently.