COAI flags security risks in private 5G spectrum allocation

The telecom industry body, the Cellular Operators Association of India (COAI), has once again voiced its concerns regarding the direct allocation of spectrum to enterprises for private 5G networks. Representing major telecom operators such as Jio, Airtel, and Vodafone Idea (Vi), COAI’s stance is consistent with industry expectations. According to the association, such a move would be detrimental to the telecom sector in India.

COAI argues that direct spectrum allocation to businesses is not a viable option in the Indian context, citing concerns related to the nation’s telecom ecosystem, government revenue, and security framework.

While some industry groups have highlighted international examples, such as the United States, Finland, Germany, and the United Kingdom, where private 5G networks have been implemented, COAI contends that these comparisons fail to consider key contextual differences. “These countries often deploy private networks in geographically isolated or remote areas with limited access to public telecom infrastructure,” the association noted. “In contrast, India does not face such coverage gaps, as telecom operators already provide robust services across most commercial and industrial corridors.”

COAI further emphasised that telecom service providers (TSPs) are better positioned to offer private network solutions to enterprises at a lower overall cost. This is primarily because TSPs have already invested substantial amounts, running into lakhs of crores, in infrastructure and network development, whereas businesses would need to build networks from the ground up.

The association also refuted claims that private 5G networks would be more cost-effective for enterprises to set up independently. “Establishing a private 5G network requires significant capital expenditure on equipment, spectrum management, security, ongoing maintenance, and skilled personnel. Most businesses lack the scale and expertise required to manage telecom infrastructure effectively, unlike licensed TSPs,” COAI stated.

Additionally, COAI expressed national security concerns, arguing that foreign corporations, especially those without a local base in India, should not be authorised to control or manage private 5G networks within the country.