Spectrum-as-a-Service: Telecom’s next enterprise bet

It sounds like an April Fool’s prank when you first hear the words Spectrum-as-a-Service. However, it is not just another phrase in telecom jargon—it goes several steps beyond. At first glance, it even feels like an oxymoron, something telcos would never entertain. After all, there is nothing more elusive, regulated, scarce, and competitively sensitive than spectrum for telcos. Over the decades, auctions, litigations, and policy debates have revolved around this single word. So, how could anyone think of slicing it?

Yet the question has never been more urgent. Telcos are struggling with both internal inefficiencies and external shocks—falling ARPUs, vanishing voice revenues, hyperscaler competition, and customer fatigue. With margins under pressure and monetisation pipelines drying up, the search for a new growth model is inevitable. Could slicing the spectrum offer that lifeline?

Is it not like attempting to cut through a steel truck—immense, expensive, and difficult to move? Yet, what if this seemingly absurd thought were possible? Imagine a company that owns a heavy vehicle and decides to rent out each component—one drives it, others share the seats, and someone uses its cargo hold. Suddenly, a static capital asset becomes a revenue-generating service.

Now, this metaphorical “what if” is becoming real. Spectrum can indeed be sliced and offered as a service. After cars, homes, software, and even rockets, spectrum has entered the as-a-Service age too. The question is—how does it work, and what makes it viable?

Understanding the Model and How it Works

At its core, spectrum-as-a-service is a commercial and technical model in which Mobile Network Operators (MNOs) dynamically allocate portions of their licensed spectrum to enterprises, vertical industries, and service providers on a usage- or subscription-based basis.

Stan Gray, SVP of IoT Broadband and High-Cat Vertical Sales at Telit Cinterion, describes it as a flexible model that eliminates the need for enterprises to license spectrum or build full private networks. “Enterprises can leverage 5G capabilities such as reliability, slicing, and low latency without managing their own infrastructure or acquiring spectrum licences directly,” he says. “The MNO remains the custodian of the network, offering virtualised, logically isolated services tailored to specific needs.”

Stefan Voll, Senior Director of Business Development at Adtran, adds that spectrum services function as a wholesale layer within optical transport networks. “They are positioned between traditional offerings such as dark fibre and capacity services. While enterprises usually buy single-capacity services or fully managed optical fibre networks, spectrum services are often sold between service providers or for large-scale AI and data centre interconnects,” he explains.

Telecom operators face relentless challenges: growing data consumption, shrinking margins, declining ARPUs, and rising infrastructure costs.

The appeal of the model is obvious. Telecom operators face relentless challenges: growing data consumption, shrinking margins, declining ARPUs, and rising infrastructure costs. On top of that, they face competitive pressure from hyperscalers, satellite operators, and private 5G networks. In such a landscape, the ability to monetise existing fibre and spectrum infrastructure becomes crucial. Spectrum-as-a-service enables operators to extend capacity, create differentiated services, and participate in enterprise digital transformation without massive new investments.

By partitioning the optical spectrum—both terrestrial and submarine—operators can allocate specific frequency bands to multiple end users. It is a shift from traditional ownership to shared utilisation, similar to the transition in cloud computing from hardware ownership to shared resource pools.

Voll points out that this is not entirely new. “Spectrum services have long existed in submarine networks,” he notes. “In terrestrial systems, they were once limited to research and education networks. But today, with exponential growth in AI and data centre interconnect traffic, the concept is being revisited to accelerate deployment and share investment. Operators want to offer something more valuable than static dark fibre.”

Technologies Enabling Spectrum Slicing

The viability of spectrum-as-a-service depends on the advancement of optical and software-defined technologies that enable precision slicing and orchestration. Through programmable optics and advanced multiplexing, operators can divide infrastructure and offer dedicated capacity blocks to multiple clients.

C-band and hybrid C+L-band cables, which combine higher capacity and wider frequency support, have played a pivotal role. So, have tools such as Reconfigurable Optical Add-Drop Multiplexers (ROADMs), coherent transponders, and wavelength-division multiplexing systems. These technologies allow operators to carve out and manage separate optical slices without compromising network integrity.

“Consider one European infrastructure provider,” says Voll. “They operate regional managed optical fibre networks—owning the fibre and optical line system—while customers manage the transponders delivering capacity at the wavelength level.”

He cites further examples: “In long-haul AI and data centre networks, a single customer may consume the full spectrum. Research networks in Europe often exchange spectrum to extend reach without heavy capital investment. Some service providers even purchase a share of the DWDM spectrum from others to meet short-term capacity needs.”

Gray points out that device trends, such as the emergence of 5G RedCap and eRedCap, further strengthen the case. “These mid-speed, cost-conscious devices fit perfectly with service-based spectrum delivery. They bridge the gap between high-end mobile broadband and low-power IoT, creating scalable, efficient, and customised opportunities for virtualised spectrum.”

Together, these developments make spectrum sharing not just a technological feat but a practical business model for future connectivity ecosystems.

Business and Industry Implications

Spectrum-as-a-service has the potential to reshape telecom economics. As Gray observes, “With consumer mobile markets nearing saturation and the ROI on 5G investments still uncertain, operators are looking for innovative monetisation strategies. The spectrum-as-a-service model aligns with the enterprise need for flexible, high-performance connectivity without the capex burden of private networks.”

Market data support the financial rationale fir this. According to Fortune Business Insights, the global optical wavelength services market could reach USD 17.65 billion by 2032, while Grand View Research projects the dark fibre network market to grow from USD 6.25 billion in 2024 to USD 13.45 billion by 2030.

The Light Communication Alliance (LCA) captures the sustainability angle: use bandwidth only when required, reducing energy consumption and avoiding underutilisation. “This approach allows operators to optimise both spectrum and power usage,” LCA notes. “It ensures that capacity is allocated dynamically, benefiting both efficiency and the environment.”

For telcos, the rewards go beyond cost savings. By packaging dedicated spectrum capacity as a managed service, they can serve sectors undergoing digital transformation—manufacturing, logistics, utilities, and healthcare—each with distinct latency and reliability requirements. For instance, a hospital may require a secure, isolated spectrum slice for telemedicine, while an automotive firm may demand ultra-low-latency connectivity for Vehicle-to-Everything (V2X) systems.

The model also allows CSPs to shift from transactional relationships to long-term enterprise partnerships, positioning them as enablers of digital innovation. “Operators can fully leverage existing network assets while opening new revenue streams,” Gray notes. “It is a fundamental reorientation from selling connectivity to selling outcomes.”

India’s Readiness and Regulatory Perspective

India represents a unique opportunity for spectrum-as-a-service due to its policy framework, market scale, and ongoing enterprise digitisation wave. However, it also poses distinctive regulatory challenges.

As Voll observes, “India’s restrictions on foreign ownership of optical transport networks give local service providers a strategic edge in catering to global hyperscalers and AI-driven enterprises. Indian players can design, build, and operate networks on behalf of international clients, effectively localising global traffic flows.”

Radio frequencies cannot be geographically contained; signals from private networks can spill beyond intended premises, interfering with public networks and affecting reliability and quality of service. 

Lt Gen Dr SP Kochhar, Director General of the Cellular Operators Association of India (COAI), has been categorical about the need to manage spectrum through licensed operators. In his statement on the Proposal for Direct Allocation of Spectrum to Private Networks, he noted: “Direct spectrum allocation to enterprises is not tenable in India due to multiple considerations related to national revenue, telecom architecture, and security. Radio frequencies cannot be geographically contained; signals from private networks can spill beyond intended premises, interfering with public networks and affecting reliability and quality of service. Such risks are best managed by licensed Telecom Service Providers.”

COAI’s stance aligns closely with the logic of Spectrum-as-a-Service. Under this model, enterprise needs—whether for manufacturing automation, smart campuses, or logistics networks—can be met through licensed operators via leasing, network slicing, or managed services. This ensures both operational efficiency and regulatory compliance.

As India rolls out enterprise 5G and prepares for AI-driven industrial use cases, the model offers a path to monetisation without direct spectrum ownership. Combined with domestic production of optical equipment and data centre growth, this could establish a new revenue layer for Indian telcos while strengthening digital sovereignty.

Opportunities, Challenges, and the Road Ahead

Spectrum services introduce a versatile option for building and expanding connectivity infrastructure. They support diverse deployment models—from metropolitan data corridors to rural access networks—enabling resource sharing and optimised capital use.

“There are strong applications outside AI and data centres,” says Voll. “In rural regions, smaller operators often lack the funds to deploy full-scale DWDM systems. Sharing infrastructure through spectrum services provides a viable and sustainable model for driving digital transformation in such areas.”

Revenue opportunities also extend to differentiated service levels, such as guaranteed latency for V2X applications, mid-speed industrial IoT connections, or secure, isolated slices for healthcare systems. Spectrum services can add monitoring and management layers to access and metro networks, enhancing the value of fibre assets beyond static leasing.

However, the transition is complex. Gray cautions that the shift demands a fundamental rethink of telco operations. “Operators must evolve from being network owners to orchestrators of service-centric experiences. It is about designing networks that adapt dynamically to enterprise needs rather than selling fixed capacity.”

This evolution requires significant organisational realignment. Multiple concurrent network slices—each with unique performance metrics—necessitate advanced orchestration platforms and robust automation. Sales and engineering teams will need to collaborate more closely, offering consultative services rather than standardised bandwidth packages.

From a strategic standpoint, spectrum-as-a-service is not just about monetisation—it is about redefining telcos’ role in the digital economy. As connectivity becomes embedded in every business process, telecom operators must position themselves as infrastructure enablers for industry transformation.

The shift also presents an opportunity to align with global sustainability goals. Efficient spectrum utilisation means less redundant equipment and lower power consumption. When paired with renewable energy adoption across networks, this could contribute meaningfully to operators’ net-zero commitments.

Slicing the Truck, Steering the Change

What once seemed implausible—slicing something as intangible yet precious as spectrum—is now technically feasible and commercially relevant. Spectrum-as-a-Service extends the logic of cloud computing to the very fabric of connectivity.

For operators, it represents more than just another service model; it is an opportunity to reinvent revenue streams and restore value in an industry squeezed between costs and competition. Enterprises, in turn, gain the flexibility, reliability, and control of private networks without the burden of spectrum ownership. It is also a rare win-win moment in telecom’s long struggle with profitability and performance.

Like slicing that proverbial steel truck, the process requires precision, the right tools, and a willingness to rethink ownership. It is not a butter knife task; it is a deliberate, engineered transformation requiring both sharp technology and strategic foresight.

As networks evolve toward 5G Advanced and 6G, this model could redefine how capacity is managed and monetised. For telcos seeking new growth engines and sustainable operating models, spectrum-as-a-service may well represent the next major pivot—where infrastructure becomes intelligent, and spectrum itself becomes a service.