Reliance Jio: DoT’s good news for Airtel and Reliance Jio may be ‘bad news’ for Infosys, GMR and others – Times of India
The Department of Telecommunications (DoT) has reportedly decided against giving spectrum directly to enterprises for captive private networks. According to a report in Economic Times (ET), in a snub to companies such as Infosys, Larsen & Toubro, Tata Power, GMR and others; DoT may not give 5G spectrum to enterprises for private networks. These companies have been calling for allocation of airwaves without auctions, a demand strongly opposed by telecom companies Airtel and Reliance Jio. Indian telcos have been lobbying against direct allocation of 5G spectrum to companies.
The DoT is reportedly of the view that it won’t be feasible to directly allot spectrum to enterprises for private networks under the present legal framework. This is said to be in line with the attorney general R Venkataramani’s advice backing auctions. “If any enterprise wants to roll out its captive network, it can be done utilising the options already notified by DoT, including leasing of spectrum from telecom operators,” an official told ET.
The report further added that DoT will soon inform the cabinet and the Telecom Regulatory Authority of India (Trai) about its decision. Incidentally, this contradicts the initial guidelines on private networks released by the DoT in 2022.
Tech companies vs telecom companies
The issue of direct allocation of 5G spectrum to enterprises has been a controversial one, pitting technology companies against telecom service providers in the country. Telecom companies have opposed any direct allocation, contending that this would distort the level playing field and give technology players a backdoor entry to provide 5G services to enterprises. On their part, tech companies want spectrum directly from the government for setting up captive networks, saying enterprises should not need to depend on telcos.
The DoT is reportedly of the view that it won’t be feasible to directly allot spectrum to enterprises for private networks under the present legal framework. This is said to be in line with the attorney general R Venkataramani’s advice backing auctions. “If any enterprise wants to roll out its captive network, it can be done utilising the options already notified by DoT, including leasing of spectrum from telecom operators,” an official told ET.
The report further added that DoT will soon inform the cabinet and the Telecom Regulatory Authority of India (Trai) about its decision. Incidentally, this contradicts the initial guidelines on private networks released by the DoT in 2022.
Tech companies vs telecom companies
The issue of direct allocation of 5G spectrum to enterprises has been a controversial one, pitting technology companies against telecom service providers in the country. Telecom companies have opposed any direct allocation, contending that this would distort the level playing field and give technology players a backdoor entry to provide 5G services to enterprises. On their part, tech companies want spectrum directly from the government for setting up captive networks, saying enterprises should not need to depend on telcos.
What may have turned the things for telcos
Faced with the opposition from telcos, the DoT sought the attorney general’s (AG’s) view. He reportedly said that auctions are the preferred mode of allotting natural resources such as spectrum. According to the report, he further said that while the government can take a stand on the classification of spectrum and contend that a particular bandwidth does not need to be auctioned, questions could be raised at a later stage, as happened in the 2G case. This may have prompted the DoT to rethink the direct allocation option.
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