why TCS vs telcos? Jio, Airtel flag concerns over 5G for private networks.

India’s top telcos have said there is no justification whatsoever for direct allocation of 5G spectrum via administrative route to corporate enterprises for private captive networks, saying such a move would give a backdoor entry to private companies, truncate the revenues of licensed telccs, rob the government of valuable revenues and create a non-level playing field.

“There is no need to alienate spectrum directly to companies for captive private networks….the licensed access service  ..

The telcos’ stand directly in conflict with the position of the biggest tech companies like Tata Consultancy Services (TCS) and 
Tata Communications
 NSE 3.10 % who want the government to directly allocate 5G spectrum to private enterprises, as recommended by the sector regulator. In fact, the no-holds barred face-off between telcos and tech companies over direct spectrum allocations for private 5G networks is believed to have held in abeyance t ..

The COAI added that “any move such as setting aside/ allocation of 5G spectrum (via delicensed/ administrative basis) for catering to the connectivity needs of Industry 4.0 / M2M communication services by way of industry-led private captive networks, would create a non-level playing field, leading to arbitrariness in basic policies, discouraging investment in networks and leading to disorderly growth of the sector by back-door entry with undue advantage to private commercial entities at the cost ..

Earlier, India’s top telcos had slammed Trai’s recommendation that 5G spectrum for private enterprise networks be assigned administratively on demand through a publicised online portal-based process, and called on the regulator to scrap the move. They had warned that such a proposal, if accepted by the government, could potentially rob telcos of their future 5G enterprise business revenues – estimated at around 40% of overall 5G business revenues – and destroy the 5G business case in India.


The fight between telecom operators and corporate entities like Tata Consultancy Services (TCS) has once again delayed the 5G spectrum auction, which is already behind schedule.

The Telecom Regulatory Authority of India (TRAI) submitted its recommendations, which were approved by the Digital Communications Commission (DCC) on May 17. The cabinet is yet to approve TRAI’s proposals and it usually takes around 45 days from approval to begin the auctions

The 5G spectrum auctions were expected to take place in June after numerous delays, but even that seems to be far-fetched now.

“We request the government not to reserve or de-license any spectrum which has been identified or likely to be identified for use of IMT/ commercial services for Private Captive Networks. It amounts to undue advantage to private commercial entities at the cost of government exchequer,” COAI added in its statement.

SEE ALSO:
Vodafone Idea wants to triple the money it makes from its users, but it will take more than hope and prayers to achieve it

Mukesh Ambani's Jio lags behind Airtel which is the top telecom brand in India

Jio, Airtel and Vodafone Idea are reportedly planning on increasing prices again
 
The much awaited 5G spectrum auctions that were expected to take place later this month may get delayed once again. The commercial rollout of 5G services is already behind schedule due to the delays in spectrum auction.

According to a report by BusinessLine, divergent views of telecom service providers and tech giants seeking a private network may have delayed the 5G spectrum auctions.

Telecom minister Ashwini Vaishnaw had earlier said that the 5G spectrum auctions will begin in June.

The government had earlier ruled out the allocation of 5G spectrum to private network providers. The companies have reportedly approached the government through industry bodies.

The private companies have claimed that not including in the auction will damage the process of digitization of the economy and adversely impact the competitiveness of Indian products in the global market.

Enjoyed this article? Stay informed by joining our newsletter!

Comments

You must be logged in to post a comment.

About Author