Global telecom industry body GSMA has urged the department of telecommunications (DoT) not to assign spectrum directly to enterprises for captive non-public networks (CNPNs), warning the move would harm consumer mobile services, distort competition and slow India’s digital push.
In a letter to DoT secretary Neeraj Mittal, GSMA recommended strengthening a telco-led framework, relying on spectrum leasing and network slicing as the “primary and preferred ways for enterprise connectivity requirements”.
“We submit that India’s state-of-the-art public mobile networks are fully capable of meeting enterprise connectivity needs in a competitive, secure, and cost-effective manner,” wrote Jeanette Whyte, head of public policy (APAC), GSMA, on August 19. “We kindly request the DoT not to consider direct assignment of IMT spectrum to enterprises for CNPNs.”
The letter, reviewed by Moneycontrol, cautioned that stand-alone private networks on dedicated airwaves would duplicate existing infrastructure and undermine public networks.
“Global evidence clearly shows that spectrum set-asides in prime IMT bands offer no measurable benefit to enterprises, while significantly undermining public mobile network performance, affordability and consumer outcomes,” she said.
‘Uneven field’
GSMA also raised concerns over a possible uneven playing field, arguing that direct allocation could allow large tech firms to provide 5G connectivity without licensing obligations, levies, and compliance requirements imposed on telcos.
“This would, in effect, allow these entities to operate as de facto service providers in the enterprise domain, distorting fair competition while weakening the integrity of the established regulatory framework,” Whyte said.
The industry body cited global research showing spectrum carve-outs neither boost private 5G uptake nor drive faster enterprise digitalisation but degrade consumer experience.
A 2024 GSMA Intelligence study of 51 countries found no causal link between direct spectrum assignment and private network growth. By contrast, reserving 100 MHz of IMT spectrum led to a 25 percent decline in average download speeds.
“In a mobile-first country such as India, where billions rely on mobile broadband, such a decline would slow productivity, increase costs, and slow down Digital India’s progress,” Whyte warned.
Private 5G is widely viewed as a key enterprise application, offering high-speed, low-latency connectivity for industries while creating new monetisation avenues for operators. But in India, adoption remains limited due to regulatory uncertainty and the lack of a mature device ecosystem.
GSMA’s intervention comes as the DoT reinitiates its spectrum-demand study for private 5G, the second such exercise since June 2022, when it first allowed CNPNs to either lease spectrum from operators or seek it directly.
Earlier this year, TRAI also recommended the authorisation of CNPN service providers under the new Telecommunication Act, 2023.
Drawing on global comparisons, the GSMA said spectrum set-asides in the US and Germany had raised costs, slowed public 5G rollout, and delivered limited private 5G uptake. By contrast, operator-led approaches in China and Finland spurred digitalisation in industries such as ports, mining and manufacturing while ensuring affordable consumer access and strong 5G performance.
“Spectrum scarcity remains a persistent challenge; diverting resources from IMT bands will fragment bands critical to 5G, delay rollout, and reduce coverage,” Whyte said. “The economic cost would be significant, as operators face higher spectrum expenses with less capacity to invest in networks, slowing down the country’s digital inclusion targets.”
The Cellular Operators Association of India (COAI) has also urged the government to reject direct spectrum allocation to enterprises, insisting private 5G should only be deployed through licensed telcos via leasing or network slicing.
Representing Reliance Jio, Bharti Airtel, and Vodafone Idea, COAI said global comparisons were misplaced since private networks abroad largely serve remote or niche areas.
It said stand-alone private networks were neither cheaper nor more efficient. It warned that bypassing telcos could dent revenues and create an uneven playing field by exempting enterprises from regulatory and financial obligations.
(Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.)
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