The non-applicability of captive private networks in India: COAI's perspective

Explaining COAI's perspective on the non-applicability of captive private networks in India, Lt. Gen. Dr. S.P. Kochhar, Director General, COAI said, “The prerequisites for industrial units to commence operations, with or without proper telecom solutions, include an industrial setup, physical infrastructure, roadways to the facility, supply of raw materials, workforce, power, and logistics, among others. The absence of telecom infrastructure, despite the presence of all these essential facilities, would create a serious gap. However, in India, such a scenario does not arise anywhere. If at all, such situations may occur in a few exceptional cases, such as mountainous regions, large water bodies, or Naxalite-affected areas, where the aforementioned facilities are also absent.

Therefore, Captive Private Networks or Captive Non-Public Networks (CNPNs), which are primarily required in geographically vast and sparsely populated regions where public telecom connectivity is limited or non-existent, do not have much relevance in the Indian context. With its extensive telecom coverage spanning diverse demographics, India has positioned itself among the global leaders in digital connectivity.

Importantly, under the visionary leadership of the Honourable Prime Minister of India, Shri Narendra Modi, and his drive to enable 5G connectivity across the nation, private networks derived from Telecom Service Providers (TSPs) can meet enterprise Service Level Agreements (SLAs) at operational costs only. These technically robust networks are deployed and operated by TSPs, eliminating the additional burden on enterprises to manage a complex network that lies outside their domain of expertise. In fact, it is noteworthy that several companies that initially attempted to set up and maintain private networks eventually reverted to TSPs for network management, recognising the complexity and operational challenges involved.

Given India’s widespread telecom penetration, the need for enterprises to establish private networks is virtually non-existent. In fact, as per the Telecom Regulatory Authority of India’s (TRAI) recommendations on the “Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023,” dated 17th February 2025, “Though the licensing framework for CNPN was put in place in June 2022, the CNPN services have not picked up.”

India’s licensed Telecom Service Providers (TSPs) are fully equipped to meet enterprise demand for 5G applications through advanced solutions such as spectrum leasing and network slicing within their existing public networks, enabling the simultaneous handling of different types of traffic. This model ensures the efficient utilisation of a critical national resource while preventing unnecessary fragmentation of spectrum, which would otherwise arise from setting aside dedicated frequencies for captive private networks.

Another crucial aspect is technology refresh. The rapid advancements in telecom technology necessitate continuous upgrades and modernisation, an effort that TSPs undertake efficiently. In contrast, captive private networks may struggle to keep pace due to the high costs associated with continuous technological refreshes. The risk of technological obsolescence is substantial, as outdated hardware and software can become vulnerable if not subjected to regular updates and security patches.

Moreover, it is impractical to assume that the operations and outcomes of a captive private network would remain isolated and not be utilised for communications with the external world, including other offices and headquarters. Unlike networks provided by TSPs, isolated captive private networks do not ultimately connect to the external network or Public Switched Telephone Network (PSTN).

Instead of creating isolated networks, efforts should focus on strengthening the broader telecom infrastructure that drives industrial growth. Contributions to initiatives such as the Digital Bharat Nidhi (formerly the Universal Service Obligation Fund – USOF) can enhance connectivity in the few remaining underserved areas, fostering nationwide digital inclusion.

India stands at a pivotal moment in its digital evolution, with 5G rollouts unlocking unprecedented economic opportunities. Policymakers must adopt a measured approach to regulatory decisions, ensuring they align with the nation’s long-term economic and technological interests.”