DoT ignores telcos' protest, favours 5G spectrum sale for captive networks

Enterprises setting up private captive networks may obtain the spectrum directly from the DoT, says a media report

The Department of Telecommunications (DoT) favours selling 5G spectrum to private players for their captive networks for use in campuses like factories, hotels and universities, a media report said.

According to a report in The Hindu Businessline, the Department of Telecommunications (DoT) discussed the matter in a meeting with Telecom Minister Ashwini Vaishnaw on Monday.

“Enterprises setting up private captive networks may obtain the spectrum directly from the DoT and establish their isolated network,” Businessline reported quoting a person in the know.

The Broadband India Forum (BIF) wants the spectrum to be allocated to private enterprises for captive networks. At the same time, the Cellular Operators’ Association of India (COAI) says the spectrum should remain with telecom service providers (TSPs).

Captive networks are isolated networks in which a spectrum is assigned to enterprises to be utilised within a limited geographic area. Therefore, it is also referred to as a spectrum for localised or local use. 

Earlier, COAI, which has Bharti Airtel, Reliance Jio and Vodafone Idea as its key members, has written to Vaishnaw saying there is ‘no business case for the rollout of 5G networks’ if captive private wireless networks are allowed.

Permitting such captive networks will ‘diminish the revenue so much that there will be no viable business case left for the telecom service providers and there will not remain any need for 5G network roll out by TSPs’.

This strong stance by telcos could adversely impact or delay the country’s 5G rollout expected by the end of the year. It could even force them to relook at their 5G spectrum auction strategy, though most say they are unlikely to pull out from participating in the auction altogether.