What is private 5G network and its application in India?

Intended for non-public use, private 5G network is the next big thing in digital transformation for enterprises, industries and governments around the world.  

It is essentially a local area network that uses 3GPP-based network spectrum, to create unified connectivity and a secure means of communication within a specific area.  

Private 5G network is on the cusp of taking off around the world. Last year, Germany issued 5G private licenses to over 33 companies — for companies like BASF, BMW, Bosch, Lufthansa, Siemens, Volkswagen etc — to run exclusive networks.

France, the UK, the US and Australia are also putting in place policies to roll out private 5G networks.

Back home, Indian IT majors are planning to deploy private 5G test beds spread over their several campuses across the country.

Tata Consultancy Services, engineering services provider L&T Technology Services and Tech Mahindra are reportedly planning to adopt private 5G networks.

A private 5G network enables enterprises to dedicate bandwidth for ultra-reliable low-latency use cases such as robotics and industrial IoT, with control over data, security and networks. It can also be tailored for specific industry and business requirements.

Private 5G network use cases

Superior service security through SIM-based authentication

Improved control and management of network connectivity 

Better availability and coverage by new spectrum bands 

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Full control over the enterprise’s operating processes 

Enhanced data security, as data is segregated and processed locally 

Controlled latency enables near real-time communication

Network can be optimised for specific user groups, devices or applications 

The technology offers superior security through SIM-based authentication, better control and management of connectivity, full control over the enterprise’s operating processes, real-time communication through controlled latency, and network slicing benefits allowing the network to be optimised for the needs of specific user groups and devices.
 

What are some of the TRAI recommendations

• Enterprise may request telecom service providers (TSPs) to establish an independent isolated private network at enterprise’s premises using the TSP’s spectrum
• Enterprise may obtain the spectrum on lease from TSPs and establish their isolated captive wireless private network
• Enterprise may obtain the spectrum directly from the government and establish their own isolated captive wireless private network
• Certain spectrum be earmarked for captive wireless private networks to be assigned directly by DoT to captive wireless private network permission holders/licensees
• Captive wireless private network should not be connected to the public network in any manner

TRAI recently recommended that enterprises in may request Telecom Service Providers to establish an independent private 5G network in the enterprise premises using the service provider’s spectrum.

Enterprises may obtain 5G spectrum on lease from service providers and establish their own isolated Captive Wireless Private Network. Enterprises may also obtain the spectrum directly from the government and establish their own captive network.

"Telecom Service Providers have and going forward will invest lakhs of crore rupees in network rollouts. Enterprise services constitute 30-40% of the industry’s overall revenues. Private networks once again disincentivise the telecom industry to invest in networks and continue paying high levies and taxes", the Cellular Operators Association of India said

However, according to media reports, leading Indian telecom service providers have contested the move of private 5G spectrum allocation to enterprises and corporates, as it poses a threat to their future revenues. 

In an appeal to TRAI, COAI said,  "Disallow private enterprise networks for the financial viability and orderly growth of the telecom industry, which is more than capable of delivering these services to businesses".

Industry analysts believe there’s nothing wrong if the TRAI decides to allocate spectrum at auction determined price to enterprises to set up their intranet kind of private network.