The DoT<\/a> is of the view that it won’t be feasible to directly allot spectrum to enterprises for private networks under the present legal framework, according to officials aware of the details. This is in line with the attorney general R Venkataramani’s advice backing auctions, which ET had reported March 18. Telcos have also been lobbying against direct allocation of 5G spectrum<\/a> to companies.
“If any enterprise wants to roll out its captive network, it can be done utilising the options already notified by DoT, including leasing of spectrum from telecom operators,” an official told ET.
The DoT will soon inform the cabinet and the Telecom Regulatory Authority of India (Trai<\/a>) about its decision, officials said.
This contradicts the initial guidelines on private networks released by the DoT last year.
Tech Firms Vs Telcos
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Those said that enterprises wanting to set up their own captive networks can lease 5G<\/a> spectrum from telecom operators or get it directly from the DoT. They could also ask telecom operators to roll out their private networks.
Faced with the opposition of telcos, the DoT sought the attorney general’s (AG’s) view. He said that auctions are the preferred mode of allotting natural resources such as spectrum. Citing the 2G scam, the government’s top law officer had urged against the administrative allocation of spectrum.
“The AG has said this keeping in mind the principle that any community resource, in all circumstances, should be allocated in a manner that may fetch the best return possible and (so) the allocation of the resource through the auction process is found desirable,” said one of the officials.
Venkataramani had also said that while the government can take a stand on the classification of spectrum and contend that a particular bandwidth does not need to be auctioned, questions could be raised at a later stage, as happened in the 2G case<\/a>.
That prompted the DoT to rethink the direct allocation option.
“In the case of administrative allocation, when there are more players, the first criterion which comes to mind is first-come-first-served, but the same was denounced by the Supreme Court,” said a second DoT official, referring to the 2G case<\/a>.
The official added that DoT may intervene in future if the demand for private networks is not met through the available options, including leasing of spectrum.
The issue of direct allocation of 5G spectrum<\/a> to enterprises has been a contentious one, pitting technology firms against telecom operators. Telcos have opposed any direct allocation, alleging that it would distort the level playing field and give technology players a backdoor entry to provide 5G<\/a> services to enterprises. Tech companies want spectrum directly from the government for setting up captive networks, saying enterprises should not need to depend on telcos.
Before any direct allocation for captive networks, DoT was to test the demand for 5G spectrum to set up captive private networks.
The demand study showed that private networks would have spectrum requirements in all bands, including low (sub-1 GHz), mid (1-6 GHz) and high (millimetre) wave bands, said one of the officials cited above. In such a scenario, when the requirement is so diverse, the best possible method is leasing of spectrum and that can be done through licensed telecom operators, the person said.
As part of the exercise, 20 applications were submitted by companies including Infosys<\/a>, Capgemini, GMR<\/a>, Larsen & Toubro, Tata Communications, Tata Power<\/a> and Tejas Networks. They sought direct allocation of spectrum in the regulator-identified bands, including the mid-band (3,300-3,670 MHz), for private networks.
While giving its recommendations for the 5G auction held last year, Trai<\/a> had proposed to reserve at least 40 MHz in the 3,700-3,800 MHz band, or the mid-band, for private networks. In addition to this, the regulator had proposed to reserve at least 40 MHz in 4,800-4,990 MHz band and at least 400 MHz in 28.5-29.5 GHz or millimetre wave band for private networks.
The DoT had previously rejected the Trai’s proposal to reserve some spectrum bands for private networks.
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