Direct spectrum allocation to enterprises to boost govt revenue: BIF on telcos’ claims

Technology companies have urged the Indian government to earmark a certain amount of exclusive spectrum for private 5G networks in each type of spectrum band and allow direct allocation of spectrum to enterprises at a nominal administrative fee, as per global best practices.

Broadband India Forum, which represents tchnology and broadband companies, in its recommendations, urged the government to consider the regulator’s recommendations on private 5G networks, rubbishing telcos’ claims to the contrary by saying that direct spectrum allocations to enterprises for private 5G networks will boost government revenues and pose no security concerns.

The broadband body counts top tech players such as Tata Consultancy Services (TCS), Cisco, Amazon, Google, Microsoft, Facebook-owner Meta, Qualcomm and Intel among key members.

BIF’s comments came a day after the Cellular Operators Association of India (COAI) warned that direct spectrum allocations to enterprises for private 5G networks would give the latter a backdoor entry into telecom services, threaten national security, rob licensed operators and the government of precious revenue.

It also urged the government to facilitate a light-touch online portal based paperless regime for acquiring permission/license for ‘Captive Wireless Private Network (CWPN)’ within 30 days of application, as recommended by TRAI to enable ease of doing business (EoDB).

“We trust the Union Cabinet, led by the Hon’ble Prime Minister of India – who has presented a highly progressive vision and an extremely forward-looking approach towards use and advancement of technology to fulfil India’s digital ambitions – will decide accordingly, keeping in mind the overall growth and advancement of the nation, the vital aspects of consumer benefits, adoption of technology, and continued reforms, for the benefit of all stakeholders, eventually leading to greater economic as well as socio-economic gains for the Country,” BIF said.

Countering telcos’ claims, BIF said that private 5G networks are best set up by enterprises themselves as they are the best qualified to do so. “Only the enterprise knows best its requirements of very high SLA and thus design networks to meet these. They would be best equipped to design and set up their own networks.”

The body said that a public telecom network set up by a telecom licensee or a telco would necessarily have to be one which optimises the various needs of the masses. “It would not be in a position to meet specific enterprise higher and specific SLAs that are characteristic of specific industry verticals.”

BIF also claimed that “Private Networks” constitute additional revenue streams for the telcos and the Government. This revenue stream has not yet been tapped, it said, adding that most of the revenues of the telcos are external and that remains completely untouched and hence they remain protected as does Government revenues.

“Government revenues accrue from the public usage of spectrum. Private Networks are NonPublic Networks. They would provide an additional source of revenue for the Government,” it said.

BIF added that spectrum should be given through separate allocation mechanism than that being given for Public Networks which is through auction. “This is because this is being utilised by only one user in a given local area, unlike the case of public networks. Hence it needs to be given directly to the enterprises at a rational and reasonable price through a suitable administrative mechanism. This is based on best practices by other countries all over the world.”

BIF also said that it was a misconception that Private 5G Networks would lead to revenue losses for the telcos. “In actuality, in the present scenario, majority of the enterprise revenues of TSPs would be through external network services which comprise of voice and data communications. Captive usage in the current situation would only contribute a minor share in processes/applications like robotics, automation, etc., due to challenges in delivering the required SLAs through public networks. Therefore, the speculated loss in revenues for telcos via enterprise services is a misplaced one.”

The body said that India needs private 5G to accelerate Digital Transformation and Industry 4.0. “India needs higher efficiencies in verticals like Manufacturing, Healthcare, Education, Agriculture, Financial Inclusion and many others to accelerate the process of digital transformation, which is a national priority.”

Private 5G Networks are not about “Public Data and Voice networks” working inside private/captive campuses as is being alluded to and misunderstood in certain quarters, BIF said.

“It is about deployment of high speed, enhanced data capacity and ultra-low latency applications inside a closed manufacturing unit, hospital, airport, shipping port, etc. Since none of these applications are working in India at present, claims to be able to deliver these features through public networks are unsubstantiated,” it added.