Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power, and Tejas Networks are among more than 20 companies that have submitted applications for the direct allocation of 5G spectrum to establish private communication networks, according to officials familiar with the matter.
These applications were filed in response to an initiative by the Department of Telecommunications (DoT) to assess the demand for spectrum for private networks. Under a spectrum allotment policy announced in June, one option was for the department to directly allocate airwaves for such captive networks, contingent on conducting a demand study. The DoT clarified that the ongoing exercise is to study demand, and submitting an application at this stage does not guarantee spectrum allocation.
There is no specified deadline for direct spectrum allocation, and industry executives estimate that it may take one to two years for the government to establish detailed rules for the allocation process.
Queries to companies such as Infosys, Capgemini, L&T, GMR, Tejas Networks, and others went unanswered as of the time of publication on Thursday.
According to initial guidelines on private networks released by the telecom department, enterprises with a net worth exceeding Rs 100 crore that are interested in setting up captive non-public networks can either lease spectrum from telecom operators or obtain it directly from the DoT.
As part of the demand study, companies meeting the criteria and willing to establish private networks were permitted to apply for spectrum. Additionally, the DoT has approached the Telecom Regulatory Authority of India (Trai) for recommendations on the pricing of allotted spectrum.
Private networks allow corporate entities to establish their own WiFi and data networks instead of relying on services from telecom providers. This concept is considered one of the most promising enterprise use cases for 5G.
The direct allocation of spectrum to enterprises for setting up captive private networks has sparked controversy, pitting technology firms against telecom operators. Telecom companies have opposed the move, alleging that it could distort the level playing field and provide technology players a backdoor entry to offer 5G services to enterprises.
Technology companies argue that direct allocation is necessary for flexibility and efficiency, and they have criticized the DoT’s demand study for lacking a defined timeline, potentially giving a first-mover advantage to telecom operators.
The Broadband India Forum, which includes technology giants like Facebook, Google, Cisco, Amazon, Tata Consultancy Services, Microsoft, and Intel as its members, has been urging the DoT for provisional spectrum allocation to enterprises until demand studies are completed and Trai provides recommendations.