DoT rejects proposal to allow companies to create internal 5G networks on their premises

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The Department of Telecommunications has partially rejected a recommendation by the Telecom Regulatory Authority of India (TRAI) that private companies be allowed to create internal 5G networks on their premises.

DoT said enterprises can request telecom service providers (TSPs) to establish an “independent isolated private network” on their premises using the TSP spectrum, but nixed a proposal that businesses be allowed to obtain spectrum directly from DoT.

DoT approved a TRAI recommendation that an enterprise can use a network slice from a TSP public land mobile network (PLMN). According to a study by the University of Edinburgh, network slicing enables the division of a single physical network into multiple networks. PLMN is a term used to describe networks that use earth-based stations rather than satellites.

It also rejected another recommendation that an enterprise can obtain 5G spectrum on lease from TSPs and establish their own isolated captive wireless private network (CWPN). On the rejected recommendations, DoT said it requires “further study of ecosystem including demand assessment, business models, implementation framework etc.”

TRAI agreed with DoT’s view that demand assessment is required for enterprises obtaining spectrum directly from DoT for establishing their private networks. But the regulator said it was not required for the clause that recommended that enterprises can lease spectrum from TSPs.

“The third option of leasing of spectrum is essential to meet the demand for private networks. The leasing option can be implemented now itself. Therefore the authority is of the view that to realise the economic benefit likely to be achieved by implementation of Industry 4.0, third option of spectrum leasing by TSP to CWPN licensees may also be permitted along with the first two options (network slicing and requesting TSP to establish independent isolated private network),” TRAI said.

Telecom operators including Bharti Airtel Ltd and Reliance Jio Infocomm Ltd have opposed the regulator's suggestion that companies in India be allowed to set up internal wireless networks using 5G technology like they are allowed in the US and Europe.

The government has dismissed the idea and said there's no proof that Indian companies actually want to, or can, do this.

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