Indian Telcos Oppose DoT Plan for Direct Spectrum Allocation

According to the news reports, the proposal by the Department of Telecommunications (DoT) to directly allocate spectrum for private 5G networks has met with strong opposition from India’s leading telecom operators. 

Industry representatives argue that such a move could pose national security risks, cause significant revenue losses for the government, and create an uneven competitive environment.

Opposition to Direct Allocation of Spectrum for Private 5G Networks

Telecom operators have expressed their disapproval of the DoT’s idea to allot airwaves directly to companies for setting up private 5G networks. They believe bypassing the auction route could deprive the government of substantial revenue. In 2022, the auction of spectrum generated ₹1.5 trillion, and any alternative mechanism could result in a considerable shortfall.

Cost Burden on Enterprises

According to the operators, independent deployment of private 5G networks would be more expensive for companies. They would need to invest heavily in equipment, spectrum management, security, network maintenance, skilled manpower and continuous technological upgrades. The industry has suggested that captive non-public networks (CNPNs) should be facilitated only through licensed telecom operators, using spectrum leasing or network slicing.

Understanding Captive Non-Public Networks

A CNPN is designed for exclusive use by an organisation and is not accessible to the public. These networks are valued for their low latency and reliable performance, making them suitable for industries such as manufacturing and fast-moving consumer goods. The idea gained momentum during the 2022 spectrum auctions when enterprises sought dedicated and glitch-free connectivity.

Industry Body Highlights Security and Regulatory Concerns

The Cellular Operators Association of India (COAI), representing major operators like Reliance Jio, Bharti Airtel and Vodafone Idea, emphasised that enterprise 5G requirements should be met only through licensed telecom service providers. 

COAI believes this approach ensures national security, revenue protection and regulatory parity. They caution that allowing private networks managed by unlicensed or foreign entities could create serious cybersecurity and surveillance threats.

Impact on Competitive Landscape

Telecom operators argue that direct allocation of spectrum to enterprises would give them infrastructure advantages without comparable regulatory or financial responsibilities. This could lead to an uneven playing field between licensed operators and private companies. Additionally, unregulated private networks might cause signal interference, disrupting public network operations.

Global Context Versus Indian Scenario

While private CNPNs have been successful in countries like the US, Finland, Germany and the UK, where geographically isolated areas have limited public network coverage, the situation in India is different. The country does not face significant coverage gaps, reducing the need for such direct allocations.

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Government Review of Direct Allocation Proposal

In July, the government reviewed the demand for direct spectrum allocation. If approved, this policy would allow enterprises to obtain spectrum without engaging with telecom service providers. Some technology companies, including Tata Communications, have consistently advocated for this approach, seeing it as a way to enhance their operational capabilities.

Conclusion 

In conclusion, Indian telecom operators believe direct allocation of spectrum for private 5G networks could jeopardise national security and reduce government revenue. They urge that enterprise 5G needs be met only through licensed service providers to ensure regulatory compliance and fair competition.

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