Hopes rising for pvt 5G networks
new delhi, June 24 -- Captive 5G networks that failed to take off despite three years of 5G may get a leg-up with the Centre weighing the case for allocating spectrum directly to enterprises, a demand that faced resistance from telcos before.
The government will soon assess the demand for such dedicated networks, two people familiar with the plan said, promising seamless automation and operational efficiency at sprawling factory premises and corporate campuses. Once the demand studies are done, the government will decide how to allot spectrum to such companies, whether through auctions by direct allotments.
"Enterprises have expressed concerns that telecom operators are charging them higher prices to set up their private networks. Also, they have said that there are also security concerns if they give contracts to telcos," one of the two people said on the condition of anonymity.
The government has toyed with the idea before: In 2022, 20 companies including Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power and Tejas Networks had moved the Department of Telecommunications (DoT) for spectrum, primarily in the 3,300-3,670 MHz band; however, the DoT did not act on these requests at the time.
"The government is evaluating which spectrum band can be allocated, and what will be the mode of spectrum allocation-auction or non-auction. In the case of a non-auction route, Schedule 1 of the Telecom Act would need to be amended," the second person said on the condition of anonymity. Schedule 1 of the Act outlines specific purposes for which the government can assign spectrum without an auction.
Private networks that operate in a closed environment could benefit a diverse set of industries such as automotive, manufacturing, coal and mines, ports, and fast-moving consumer goods.
"The potential of private 5G, or captive non-public networks (CNPN), in India is still emerging due to regulatory considerations, spectrum access arrangements, and cost factors," said Sandeep Arora, industry platform leader for telecom, India at Capgemini....
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