The Broadband India Forum (BIF) responded to telecom industry body COAI’s charges that administrative allocation of spectrum for captive 5G networks is against principles of level-playing field. The BIF said suggestions that captive networks should bid for spectrum in auctions is “extremely irrational”.
BIF refuted the “misinformation” being propagated to demand a level playing field between two completely different sets of services, public and private networks.
The BIF counts big tech companies such as Tata Consultancy Services, Cisco, Amazon, Google, Microsoft, Facebook-owner Meta, Qualcomm and Intel among its key members.
“Certain quarters and incumbents with vested interests are attempting to derail this progressive development through irrational, misleading and misinformed claims for a level-playing field between the vastly different service domains of public networks and captive non-public networks,” the BIF said.
Cellular Operators Association of India (COAI) – which represents Reliance Jio, Bharti Airtel, and Vodafone Idea – on Thursday said administrative allocation of spectrum for captive 5G networks is against principles of level-playing field and “effectively provides a backdoor entry to big technology players to provide 5G services and solutions to enterprises in India” without equivalent regulatory compliance and payment of levies that telcos are subject to.
The COAI had lauded use of open bidding and transparent auction route by companies seeking 5G airwaves.
Industry body BIF countered this saying such an argument if flawed and misleading.
“It is however, apparent that certain quarters and incumbents with vested interests are attempting to derail this progressive development through irrational, misleading and misinformed claims for a level playing field between the vastly different service domains of public networks and captive non-public networks,” BIF said.
BIF added that it is highly irreverent to imply that the Cabinet decision permitting allocation of direct spectrum to private enterprises offers a backdoor entry for them to get 5G spectrum and set up public/consumer 5G networks.
It argued that the suggestion that captive private networks should bid for spectrum in auctions is extremely irrational, given that their objective is to enhance efficiencies and not use the spectrum to provide commercial public services.
All the four methods approved by the Cabinet and issued in the Notice Inviting Applications (or the bid document) for obtaining spectrum for captive private 5G non-public networks (CNPN), have the involvement of telcos, it argued.
Even the fourth option of direct assignment of spectrum to the enterprises does not preclude the option that enterprises buying the spectrum directly from the government can have the captive network built by telcos for them.
BIF contended that this, in fact, gives telcos undue advantage over the private enterprises.
“So, in actuality, this is a case of non-level playing field in telcos’ favour. Effectively, telcos have a share of each piece of the overall pie and in no way, such a move inhibits their business plans as being incorrectly stated,” BIF said in a statement.
On the contrary, it added, there is merit in calling out a need for a level playing field between the enterprises and telcos as it is the former who are getting short-changed as a result.
“It is also surprising to note such claims being raised post submission of the applications for taking part in the auctions, which implies acceptance of the terms of the NIA – including the option of direct allocation of spectrum for CNPNs,” BIF said.
The captive 5G network play has been a flashpoint between telecom service providers (TSPs) and tech companies.
The lucrative enterprise 5G is considered a major money-spinner for players, and the decision on allowing independent entities to set up private captive networks, has dealt a severe blow to telcos.
Telcos contend that if independent entities are allowed to set up private captive networks with direct 5G spectrum allotment by the telecom department, their own business case will get severely degraded.
