Longer wait for tech cos to get direct 5G spectrum?

Awaiting 5G Allocation

- Non-public networks (NPN) useful for innovation in 5G space

- DoT says licensees to establish firms' indoor or captive and isolated NPN

- It's for own use and can't be used to provide commercial telecom services

- The licence period for captive NPNs valid for 10 yrs

Bengaluru: Technology firms are likely to a wait longer for direct 5G spectrum allocation as sources in the know said that some conditions proposed by the central government seem to be not favourable for business growth.

"It is a developing situation. They (the government) will allow you to get spectrum, but the data will be go to the cloud through a provider. The data generated (from use cases) can't be sent to the outside world. That may not help. But, we are hopeful," said a source familiar with the development.

Indian technology companies including Tata Consultancy Services (TCS), Tech Mahindra, L&T Technology Services (LTTS), and many more along with global technology giants such as Cisco, Amazon, and Google among others are keen to get 5G spectrum for developing several use cases internally.

These non-public networks (NPN) will be useful for fostering innovation in the 5G space. Earlier, Department of Telecom (DoT) had said that licensees may establish their indoor or captive and isolated NPN for their own use and can't be used to provide commercial telecom services. The licence period for captive NPNs would be valid for 10 years, it said.

As per the notification, though the applicant would not have to pay entry or licence fee, it must be registered as an Indian company under the Companies Act. If 5G spectrum is allowed for captive use, India will join a league of nations, which has already allowed such usage.

Germany, Finland, the UK, United States, France, Sweden, South Korea, Malaysia, Australia, Czech Republic, Japan, Taiwan and France had already earmarked spectrum for private networks in the mid-band (3.3-3.67 GHz) and 28 GHz millimeter wave (mmWave) band.

Earlier, telecom operators opposed the idea of giving 5G spectrum for captive usage as they feared that this would create competition in the enterprise use cases. Enterprises segment is the most lucrative segment in the 5G space which telecom operators are keen to cash in. However, technology firms said that internal usage will only showcase their ability in the 5G technology domain to current and prospective clients. This will help them not only innovate, but also to grow their client base. They are of the opinion that such allocation would not create any competitive situation for the telecom operators.

Indian IT and engineering services firms have already launched portfolio of software products and solutions as nations across the world slowly adopt 5G network. By setting up 5G labs, these firms to want win new digital deals in the IoT, AI & ML technology domains.

It's a developing situation. The government will allow you to get spectrum, but the data will be go to the cloud through a provider. The data generated (from use cases) can't be sent to the outside world. That may not help. But we are hopeful

- a source familiar with the development