There's no reason to give corporations direct access to 5G spectrum: TSPs

Direct allocation of 5G spectrum via administrative route to corporate enterprises for private captive networks is unjustified, according to India's top telecom service firms, who claim that such a move would give private companies a backdoor into the market, slash licenced telco revenues, deprive the government of valuable revenues, and create a non-level playing field.

"There is no need to sell spectrum to companies for captive private networks, licensed access service providers are fully capable of providing all customized solutions, including M2M/industrial 4.0 services, in the most competitive and cost-effective manner, and are providing such network configurations to private and public sector entities,"Cellular Operators Association of India (COAI), stated in a media statement. Reliance Jio, Bharti Airtel, and Vodafone Idea are all represented by COAI.

The telecom firms' position contrasts sharply with those of the country's largest IT firms, such as Tata Consultancy Services (TCS) and Tata Communications, which want the government to give 5G spectrum to private companies directly, as recommended by the sector regulator. In fact, it's thought that the no-holds-barred spat between telcos and tech giants demanding direct  spectrum allocations for private 5G networks has put the much-anticipated auction's final Cabinet clearance on 5G spectrum pricing on hold.

According to COAI: " Any move such as setting aside/allocating 5G spectrum (via licensed/ administrative basis for catering to the connectivity needs of the industry4.0/ M2M communication services by way of industry-led private captive networks, would create a non-level playing field, leading to arbitrariness in basic policies, discouraging investment in networks, and leading to disorderly growth of the sector by back-door entry with undue advantage to private commercial entities."

TRAI's suggestion that 5G spectrum for private enterprise networks be granted administratively on demand through a publicized web portal-based process was lambasted by India's main telecoms, who called for the  decision to be scrapped. They had cautioned that , if accepted by the government, such a plan might deprive telecoms of future 5G enterprise business income-projected to be approximately 40% of overall 5G business revenues- and derail India's 5G business case.  Following that, TRAI advised that private firms lease spectrum from telcos in its answer to the DoT's back- reference this week.