5G for private networks to hurt telecom companies business: COAI

Private enterprises have claimed that giving spectrum directly for the creation of captive networks would accelerate the digital agenda

Telecom service providers have warned the government that there will be no business case for the roll-out of 5G networks if their concern on the critical issue of private captive networks is not addressed immediately.

Cellular Operators' Association of India (COAI) in its letter to Communications Minister Ashwini Vaishnaw said, "Giving away dedicated spectrum for private captive networks will render the roll-out of 5G services by the TSPs (telecom service providers) needless because of lack of a business case."

Seeking the Minister’s intervention, the telecom body said, "If independent entities set up private captive networks with direct 5G spectrum allotment by DoT, the business case of TSPs will get severely degraded. This will diminish the revenue so much that there will be no viable business case left for the TSPs and there will not remain any need for 5G Networks roll-out by TSPs."

Telecom operators and tech companies have locked horns over the issue of 5G spectrum allocation and captive private networks. India’s top IT company TCS urged the government to directly allocate the 5G spectrum to private enterprises as recommended by the sector regulator TRAI.

Opposing the COAI stand, private enterprises have claimed that giving spectrum directly for the creation of captive networks, without any dependency on telcos, would accelerate the digital agenda.

Broadband India Forum (BIF) batted for the direct allocation of spectrum for private 5G networks to enterprises at a nominal administrative fee,

The BIF argued that the stance that private 5G networks would lead to revenue losses for the telcos, as expressed by certain entities, is a "misconception".

Earlier the Department of Telecom has taken the internal view that telecom firms were best suited to provide services to private companies. However, the final decision is yet to be taken. At present all spectrum is sold through auctions.

Though the Union Cabinet meeting held on Wednesday was supposed to take up the issue of approving the 5G spectrum auction, the decision was deferred to address the contentious issue.