“If the independent entities set up private captive networks<\/a> with direct 5G spectrum allotment by DoT<\/a> (Department of Telecommunications), it will diminish the revenue so much that there will be no viable business case left for the TSPs<\/a> and there will not remain any need for 5G Networks rollout by TSPs,” Cellular Operators Association of India (COAI<\/a>) said in a statement Thursday.
COAI represents India’s three private telcos.
The body noted that companies wanting to use 5G spectrum for captive networks have also applied for open bidding of airwaves “which ensures that level playing field is maintained and all interested parties bid for the spectrum required by them”.
The fourth applicant seeking participation in the auction - Adani Data Networks<\/a> apart from the three Indian telcos - has stated that it intends to use the spectrum acquired through the auction to provide private network solutions for its enterprise business across airports, ports & logistics, power generation, distribution, and manufacturing operations.
Two industry<\/a> bodies – the COAI for the telcos, and the Broadband India Forum (BIF) for tech and broadband companies - have off late been at loggerheads regarding the direct allocation of spectrum by the government to enterprises to set up captive non-public networks.
The BIF has maintained that direct allocation would help enterprises the freedom to choose how they want to set up their captive networks and get into tie ups with for example technology companies of their choice, rather than being forced to tie up with operators. COAI argues that telcos are perfectly capable of providing captive network services “most competitively and economically compared to private companies” and hence are against direct allocation.
The BIF have also dismissed telcos’ calls for a level-playing field between public and captive private 5G networks, calling the demand “absurd and impractical,” as the two are entirely different services for two entirely different requirements and not competing with each other.
BIF’s key members include Tata Consultancy Services (TCS), Cisco, Amazon, Google, Microsoft, Facebook-owner Meta, Qualcomm and Intel.
The COAI also argued that the prospect for administrative allocation of spectrum for captive network “effectively provides a backdoor entry to big technology players to provide 5G services and solutions to enterprises in India” without equivalent regulatory compliance and payment of levies that TSPs are subjected to.
The DoT declared in the notice inviting applications (NIA) that non-telcos\/enterprises will be able to get spectrum directly from the government. It however outlined that such a request will be subject to demand assessment following which the DoT would consult the Telecom Regulatory Authority of India (Trai) before finally allocating the spectrum.
While companies bidding in the auction process will have to shell out big bucks to get their hands on 5G airwaves, those seeking it administratively need only pay a one-time application fee of Rs 50, 000. No entry fee or license fee will be levied in this case.
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