The Ministry of Telecommunications of India Decided Not to Directly Allocate 5G Private Network Spectrum to Enterprises

According to the Economic Times of India, the Ministry of Telecommunications (DoT) has decided not to directly allocate 5G spectrum to enterprises for 5G private network deployment.
According to the report, the Indian Ministry of Telecommunications is currently opposing the direct allocation of spectrum to enterprises, as it believes that this is not feasible under the current legal framework. In March of this year, Indian Attorney General R Venkataramani suggested that the Indian Ministry of Telecommunications prioritize auctions to allocate 5G spectrum.

The Ministry of Telecommunications of India will soon notify the Cabinet and the Telecommunications Authority of India (TRAI) of its final decision. This new decision contradicts the preliminary guidelines on private networks issued by the Indian Ministry of Telecommunications in 2022. These guidelines stipulate that companies wishing to establish their own private networks can rent 5G spectrum from telecom operators or directly obtain 5G spectrum from the Indian Ministry of Telecommunications, rather than obtaining spectrum resources through auctions.
Indian operators expressed opposition to these guidelines, and subsequently the Indian Ministry of Telecommunications consulted with the Attorney General of India, who stated that auctions were the preferred way to allocate resources such as spectrum.
The Attorney General said this, and the principle he kept in mind is that in any case, any community resources should be allocated in a way that may yield the best return, and it is advisable to allocate resources through auction procedures, “said a government official.
More than 20 Indian companies have applied to acquire 5G spectrum to build 5G private networks. These companies interested in spectrum include Infosys, Capgemini, GMR, Larsen&Toubro, Tata Communications, Tata Power, and Tejas Networks.
The applications of these companies were submitted at the request of the Ministry of Telecommunications of India, with the aim of helping to clarify the level of market demand for the spectrum required for the construction of private networks.
The possibility of directly allocating spectrum to enterprises for deploying private networks has always been a source of tension between technology companies and telecommunications operators.
The Indian Association of Mobile Operators (COAI) told the Indian government that if the authorities allow private enterprises to operate their own 5G private networks, telecom operators will have no incentive to deploy 5G networks.
Some of the main members of COAI include Bharti Airtel, Reliance Jie, and Vodafone Idea. Previously, COAI had written to Ashwini Vaishnaw, the Minister of Communications of India, stating that if the government ultimately approves the deployment and operation of Indian companies’ own 5G private networks, operators will lose the opportunity to deploy 5G networks for commercial use cases.