BackGovt approves pvt 5G networks in likely setback for telecom cos
Telcos claimed the move would lead to revenue loss to the government and increase security concerns.
Premium5G Spectrum: The Union cabinet on Wednesday decided to enable the development of private captive networks on 5G technology, rejecting opposition to the move from telecom service providers.
Telcos claimed the move would lead to revenue loss to the government and increase security concerns.
The government said in a statement that private 5G networks would spur a new wave of innovation in Industry 4.0 applications such as machine-to-machine communications, Internet of Things (IoT), Artificial Intelligence (AI) across automotive, healthcare, agriculture, energy, and other sectors.
The government has specified that enterprises setting up the captive non-public network may obtain the spectrum on lease from telcos and establish their own isolated network. The department of telecommunications will issue the required licensing terms and conditions and spectrum leasing guidelines.
“Enterprises setting up CNPNs (captive non-public networks) may obtain the spectrum directly from DoT (department of telecommunications) and establish their own isolated network. In this regard, DoT will undertake demand studies and thereafter seek TRAI recommendations for direct assignment of spectrum to such enterprises," the government said.
The move is a blow to telecom service providers that have said that this will distort the level-playing field and benefit big tech companies like Google and Amazon. Among companies, Tata Consultancy Services have been seeking direct allocation of spectrum for applications such as machine-to-machine communications, IoT and AI.
Broadband India Forum (BIF), which represents technology companies backing private 5G networks, welcomed the government’s decision.
“The advancement of enterprises through dedicated captive private 5G networks will help gain efficiencies in all vital industry verticals, thereby helping leverage our geopolitical advantage towards the attainment of our national missions of ‘Atmanirbhar Bharat’ and ‘Digital India," said BIF president, T.V. Ramachandran.
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