Indian telecom companies oppose DoT plan on direct network allocation

Say move would be detrimental to national security, hit revenues

Indian telcos have opposed a proposal from the department of telecommunications (DoT) on allotting airwaves for private 5G networks through direct allocation.

 

According to them, such a move would be detrimental to national security and result in exclusion of revenue that would have come from auctioning these airwaves.

 

Reiterating their views on the matter, the carriers have argued that deployment of private 5G networks independently would be costlier for companies. This is because they would have to spend significantly on equipment, spectrum management, security, network maintenance and skilled personnel, besides regular upgradation of technology, which would again require investments.

 

They added that captive non-public 5G networks (CNPNs) should be permitted through licensed telecom operators only through spectrum leasing or network slicing.

 

A CNPN is a communication network meant for an enterprise or entity’s own use and not for public use.

 

Having little to no latency, the solutions were first mooted when 5G auctions were held in 2022, with the intent of offering dedicated and glitch-free connectivity to industries like manufacturing, fast-moving consumer goods (FMCG) and others. 

 

“All enterprise 5G needs must be fulfilled through licensed telecom service providers (TSPs) via spectrum leasing or network slicing as this would ensure national security, revenue protection and regulatory parity in this rapidly-evolving ecosystem,” said SP Kochhar, director general at the Cellular Operators Association of India (COAI), in a statement on Monday.

 

 

COAI represents leading telcos Reliance Jio, Bharti Airtel and Vodafone Idea that together cater to over one billion mobile phone users in the country.

 

“One must also consider the significant loss to the government exchequer in case of private networks as the national auction of spectrum generated ₹1.5 trillion in 2022 alone,” the industry body added.

 

It added that such a move from the government would create an uneven playing field between telcos and private entities. These entities enjoy infrastructure benefits without comparable regulatory or financial obligations.

 

“Private networks managed by unlicensed or foreign entities raise serious national security concerns as these players are not bound by the same compliance, interception and regulatory obligations as TSPs,” the COAI argued further. It noted that without a clear regulatory framework, there would be no accountability in case of misuse, breach or attack.

 

It could also hinder the government’s ability to ensure lawful interception, user traceability and emergency response coordination. It would thus open up the country to cybersecurity, surveillance and diplomatic risks.

 

The industry said that CNPNs would work for countries like the US, Finland, Germany and the UK, where there were geographically secluded areas with limited public network coverage. This was not the case for India which had no coverage deficit.

 

It also warned that unlicensed private networks could cause signal interference and disrupt public networks.

 

COAI’s views come at time when DoT has asked for opinion on whether the spectrum should be given directly, which means not through the regular mechanism of auctions.

 

The government assessed the demand for direct spectrum allocation for private networks in July. If approved, enterprises or companies could get spectrum directly, bypassing telcos.

 

Back in 2022, carriers had pegged CNPNs as potential revenue generators as they could charge enterprises for leasing spectrum or even put up their 5G networks for a fee.

 

However, private enterprises, such as Tata Communications and other technology majors, have been consistently demanding direct allocation of airwaves for CNPNs.