Home/ News / India/  DoT to seek Trai estimates on 5G airwave pricing for pvt networks
Back

DoT to seek Trai estimates on 5G airwave pricing for pvt networks

Government had received multiple applications from a handful of major companies which have sought licenses for multiple locations, taking the number of total applications to more than a dozen- and-a-half.

According to reports, leading companies applied for the direct allocation of airwaves for setting up captive non-public 5G networks. (Mint)Premium
According to reports, leading companies applied for the direct allocation of airwaves for setting up captive non-public 5G networks. (Mint)

The telecom department will identify spectrum bands for the direct allocation of airwaves for private 5G networks and then seek recommendations from the telecom regulator on the pricing, a top official said, indicating the government is unlikely to hand out airwaves administratively as was being demanded by some tech companies.

After several studies, the telecom department has concluded that demand was not very high. “Only five companies have applied...so the demand is very small," the official said.

“We will identify the bands, after which we will seek recommendations from Trai on the pricing," the official said, asking not to be named since the discussions were yet to begin. The official added that the government had received multiple applications from a handful of major companies which have sought licenses for multiple locations, taking the number of total applications to more than a dozen- and-a-half. According to reports, leading companies, including Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power and Tejas Networks, applied for the direct allocation of airwaves for setting up captive non-public 5G networks.

Technology companies backed by the Broadband India Forum, which counts Tata Consultancy Services (TCS), Cisco, Amazon, Google, Microsoft, Meta, Qualcomm and others as its key members, have been seeking spectrum for private 5G administratively or without any charge, on the grounds that the private 5G networks were exclusively meant for use by the enterprises within their limited, defined geographic areas and not meant for public or commercial use. They have further cited examples of some major global markets that have chosen to provide airwaves to private networks administratively.

Direct allocation from the department has been a bone of contention, with telecom companies claiming it would dent telcos’ revenues from enterprise customers. Telecom operators have further demanded that the companies wanting to set up 5G non-public networks should bid for the spectrum they want to buy and hence participate in auctions.

The Broadband India Forum said that taking the route of an auction for private networks was irrational since such networks could not be compared with public 5G networks.

ABOUT THE AUTHOR
Gulveen Aulakh
Gulveen Aulakh is Senior Assistant Editor at Mint, serving dual roles covering the disinvestment landscape out of New Delhi, and the telecom & IT sectors as part of the corporate bureau. She had been tracking several government ministries for the last ten years in her previous stint at The Economic Times. An IIM Calcutta alumnus, Gulveen is fluent in French, a keen learner of new languages and avid foodie.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 19 Dec 2022, 06:53 AM IST
Recommended For You
×
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout