In a move that could come as a setback for private networks like Infosys, Tata Communications and GMR, the Department of Telecommunications is unlikely to reserve 5G spectrum in the mid-band for them. The DoT is not in the favour of the move proposed by the Telecom Regulatory Authority of India (Trai).
DoT is of the view that reserving the 5G spectrum in the mid-band (3,300-3,670 MHz), which was recently auctioned, for private networks would cause losses to the government. Any company wanting 5G spectrum must pay a market-determined price for it, is the DoT contention, according to a senior official.
“We are still in the process to finalise spectrum for private networks but reserving mid-band airwaves is not likely to happen. We will explore some more bands, apart from what has been proposed by the regulator,” the official told Economic Times.
It is worth noting here that the mid-band is the primary spectrum for 5G and the airwaves were purchased by all the three mobile operators during the auction in July.
The idea of reservation of a block of at least 40 MHz in the 3,700-3,800 MHz band for private networks was out forth by the Trai in a set of recommendations when it had also suggested a price of Rs 317 crore per MHz for the mid-band. In its suggestions, the Trai had also recommended reserving a block of at least 40 MHz in 4,800-4,990 MHz band for private networks and at least 400 MHz in the 28.5-29.5 GHz band (millimetre wave band) for private networks as well as satellite earth stations.
Firms like Infosys, GMR, Larsen & Toubro and Tata Communications had applied to the DoT seeking direct allocation of spectrum in the Trai-identified bands, including the mid-band for private networks, ET had reported earlier.
DoT is set to ask Trai for pricing for allocating spectrum to private networks once it identifies more spectrum bands.
Meanwhile, tech firms and telecom operators have been on opposite sides on the issue of direct allocation of spectrum to companies for setting up captive private 5G networks. The nod for the same was given by the cabinet in June, however, telcos have been opposing the move since then.
Telecom operators are of the view that allocation of direct spectrum to companies would distort the level playing field and give technology players a backdoor entry to offer 5G services to enterprises. Tech firms, on the other want, want spectrum directly from the government for captive networks.
Initial norms on private networks released by DoT say that companies that wish to set up their own captive networks can lease spectrum from telecom operators or get it directly from DoT. They may also ask telecom operators to roll out their private networks.
