The private network licenses have been applied for 20 geographical areas
A total of five Indian firms have applied to obtain licenses in order to provide private networks in the country, local press reported, citing sources at the Department of Telecommunications (DoT).
According to the report, the five company have applied for licenses that cover 20 geographical areas across India. The report suggested that Tata Consultancy Services, Infosys, Wipro and Aditya Birla Group could be among the firms that requested licenses for private networks.
A source also noted that an internal committee at the DoT has completed its report on the demand studies for private network in the country. The report identifies spectrum bands, which the department would potentially allocate to companies directly.
According to reports, firms such as Tata Communications, Tata Power and Tejas Networks have applied to the DoT for direct allocation of spectrum.
Over 20 Indian companies have applied to secure 5G spectrum to set private networks in the country, local newspaper The Economic Times had previously reported.
Some of the interested companies included Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power and Tejas Networks, according to those reports.
The companies’ applications were submitted in response to a request from the Department of Telecommunications meant to help figure out the level of market demand for spectrum to set up private networks. After assessing the demand, the Indian government will decide whether or not spectrum for such private networks should be assigned, and at what price. Currently, enterprises can lease spectrum from telcos to establish a private network.
However, the DoT had said that the current exercise was to study demand—so an application at this stage would not mean spectrum would be assigned to the interested company.
The potential direct allocation of spectrum to enterprises for the deployment of private networks has been a source of tension between technology firms and telecom operators.
The Cellular Operators Association of India (COAI) has told the Indian government that local carriers will not have incentives to deploy 5G networks if authorities allow private companies to run their own private 5G networks.
The COAI, which has local operators Bharti Airtel, Reliance Jio and Vodafone Idea as some of its key members, had previously sent a letter to India’s Communications Minister Ashwini Vaishnaw stating that there is “no business case for the roll out of 5G networks” if the government finally approved the possibility for local enterprises to deploy and operate their own 5G networks.
The entity noted that the possibility of permitting such private networks will “diminish the revenue so much that there will be no viable business case left for the telecom service providers and there will not remain any need for 5G network roll out by telecom service providers.”
Meanwhile, the Broadband Indian Forum, an independent think-tank and policy forum for digital communications in the country, has stated that the decision to allow tech firms to set up private networks will lead to better efficiencies and productivity and will also propel indigenous manufacturing. The entity highlighted that private 5G networks would be crucial for the enterprises to augment efficiencies and enhance productivity.
