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Why are 5G private networks failing to take off in India?
While enterprises are keen that the spectrum should be allocated administratively, the communications service providers want it to be auctioned. The ongoing conflict between the telecom service providers and the enterprises is leading to uncertainty impacting the deployment.
Initial guidelines by the Department of Telecommunications (DoT) mandated that enterprises would procure spectrum directly from the government or lease it from the telcos. Several Indian businesses have applied for the spectrum, including Wipro, Infosys, L&T, Tata Power, Tejas Networks, Capgemini, and Tata Communications.
Multiple options for spectrum access
In response to a protest from the telcos, the Department of Telecommunications (DoT) decided to offer several options to enterprises to deploy 5G wireless private networks.
An enterprise interested in deploying a 5G private network can get it through network slicing from service providers’ networks, lease it from telcos, or use the services of service providers to deploy and manage private networks. DoT had rejected the Telecom Regulatory Authority of India’s recommendations to allocate spectrum administratively to the enterprises.
“Spectrum allocation uncertainty stymied 5G private network adoption in India,” said Prabhu Ram, head of industry intelligence group at Cybermedia Research. “Enterprises are reluctant to invest in private networks without transparent spectrum allocation guidelines and cost structures. The government must swiftly address these concerns to unlock the transformative potential of 5G private networks.”
There is typically a strong, positive correlation between the number of private mobile network references and countries with dedicated spectrum, according to a report by GSA Research. “The US currently has the most customers at 163, and Germany (89), China (51), the UK (45) and Japan (35) round out the top five.” India is placed in 16th position as per the GSA report.