India to let Telecom Operators Rent Spectrum for Private Networks

The decision made by the Indian government will enable national telecommunication companies to generate more income streams.

According to an article by The Economic Times, the Department of Telecom (DoT) in India is expected to release regulations regarding the rental of mobile spectrum by domestic carriers to corporations interested in setting up private networks. This move will enable telecom companies to generate more revenue streams.

Telecom operators in India have the authority to provide spectrum to enterprises for the establishment of private networks.

According to the report, the gross revenue of the carrier will include the earnings from leasing 5G spectrum, which will then be subject to license fees.

Two major Indian telecom companies, Reliance Jio Infocomm and Bharti Airtel, have launched 5G services across the majority of the nation. This enables them to offer spectrum leasing options to businesses interested in establishing their own private networks. Additionally, according to current regulations, these local carriers also have the option to directly establish private networks for enterprises.

According to the report, it was stated that the Indian government must be informed by local telecommunications companies every time they rent out spectrum to a private network licensee. Additionally, the private network operator must obtain approval from SAFCA (standing advisory committee on frequency allocation) before commencing operations.

The possibility of assigning spectrum directly to businesses for establishing private networks has caused conflict between technology companies and telecommunications operators in India.

According to the Cellular Operators Association of India (COAI), if the government permits privatecompanies to operate their own 5G networks, local carriers will not be motivated to implement 5G networks.

The COAI, whose notable members include local operators Bharti Airtel, Reliance Jio, and Vodafone Idea, had previously communicated with India's Communications Minister Ashwini Vaishnaw, highlighting that allowing local businesses to establish and manage their own 5G networks would not be financially viable without government approval.

According to previous press reports, Nokia, a Finnish vendor, predicts a swift growth in the usage of private 5G networks in India starting from the latter half of 2024.

According to Sanjay Malik, the head of the India market for Nokia, there will be a noticeable number of early adopters in the current year. However, he predicts that the enterprises will experience a significant surge in growth by the latter half of 2024.