India Telcos say private networks will kill 5G business

India’s top tier wireless network operators have called on the Telecom Regulatory Authority of India (Trai) – India’s telecom sector regulator – to scrap the proposed move to administratively allocate 5G spectrum on demand for private enterprise networks through a publicized online portal-based process, warning that such a step could destroy the 5G business case in the country.

The businesses have mentioned that such a proposal, if accepted by the federal government, might probably rob telcos of their future 5G enterprise revenues – estimated at round 40% of the whole for 5G.  Revenue loss to such an extent won’t justify needed capital expenditure in establishing 5G networks, they’ve argued.

In its newest suggestions on 5G spectrum pricing, the Trai has advised that non-public enterprises straight acquire 5G spectrum from the federal government and set up their very own captive wi-fi non-public community (CWPNs). It has additionally beneficial a “gentle contact’ on-line portal-based regime” for buying such permissions/licences for establishing CWPNs. Trai has additionally advised that non-public enterprises have the choice to lease spectrum from telcos to arrange their very own captive non-public 5G networks.

“By permitting non-public captive networks for enterprises, Trai is dramatically altering the trade dynamics and hurting the monetary well being of the telecom trade reasonably than bettering it,” the Mobile Operators Affiliation of India (COAI) said in an announcement Tuesday, April 12th.

The COAI represents Reliance Jio, Bharti Airtel and Vodafone Thought (Vi). It added that “enterprise companies represent 30-40% of the (telecom) trade’s total revenues…non-public networks as soon as once more dis-incentivises the telecom industry to spend money on networks and in addition proceed paying excessive levies and taxes.”

The COAI has urged Trai to revisit its newest suggestions and disallow non-public enterprise networks to make sure monetary viability and orderly progress of the telecom trade that, it mentioned, is greater than able to delivering these companies to companies.

India’s mobile carriers had earlier advised Trai that any proposal to put aside 5G spectrum for personal enterprise networks for captive use both at no cost or at an administrative worth would even be legally untenable.

Trai has beneficial that the spectrum for personal networks be assigned administratively on demand by way of a extensively publicized on-line portal-based course of in a good and clear method. However the regulator has left it to the telecom division to determine whether or not such administrative allocation can be legally tenable or not, based mostly on DoT’s spectrum allocation coverage.

In its 5G dialogue paper, Trai had mentioned the likes of Germany, Finland, UK, Brazil, Australia, Hong Kong and Japan had put aside spectrum within the mmWave band for personal captive 5G networks, whereas Slovenia, Sweden and Korea deliberate to put aside each mmWave and mid-band 5G spectrum for such captive networks.

Subsequently, Tata Communications (TCL), Larsen & Toubro (L&T) and cigarette maker ITC had strongly countered the telcos’ place, and known as on Trai to again earmarking devoted spectrum non-public captive networks and undertake international practices to create a personal 5G ecosystem for enterprises to drive the federal government’s Make in India imaginative and prescient.

However one other high telco government mentioned that if operators’ potential 5G income flows from the profitable enterprise enterprise vertical dry up, they might see little enterprise sense in bidding aggressively for 5G airwaves within the upcoming sale.

Bulk of the bidding urge for food for 5G airwaves, he mentioned, stems from the sturdy income potential of the B2B enterprise enterprise. But when that income stream disappears, telcos gained’t have a viable enterprise case to splurge huge cash on 5G spectrum, particularly as they’ve sufficient spectrum to proceed their current cellular broadband companies operations.”

Know-how corporations, although, have strongly backed Trai’s name to permit non-public enterprises to straight acquire 5G spectrum from the federal government by way of the executive route.

“By way of non-public networks, Trai’s suggestions handle the pursuits of TSPs (telecom service suppliers), enterprises and the general public as extra non-public networks would result in extra employment alternatives and enterprise, and translate into larger financial output and advantages,” mentioned the Broadband India Discussion board (BIF), which counts Cisco, Amazon, Google, Microsoft, Fb-owner Meta, Qualcomm and Intel amongst its key members.

Earmarking unique spectrum for personal 5G networks, it mentioned, would additionally present an “enchancement over common SLAs (service level agreements) of public networks, moreover guaranteeing full lack of interference between them”.

BIF added that Trai’s name for task of spectrum administratively for personal 5G networks “is most acceptable” because it has thought of that captive wi-fi non-public networks should not public networks and don’t have any market prospects, and are restricted to a selected location.”

Trai chairman PD Vaghela termed the 5G spectrum rates “reasonable”, saying they have been arrived at after considering various factors including quantum of spectrum offered, competition in the market and profitability.

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April 18, 2022 Addendum:

Spectrum users have started squabbling over the telecom regulator’s recommendation to earmark certain bands for captive wireless private networks.

The cellular operators under the COAI have opposed regulator suggestions of allowing enterprises to build their own private 5G networks for captive purposes.

The suggestion has been welcomed by the Broadband India Forum (BIF).

Technology players such as Facebook, Google, Indian Space Association (ISpA) want the 28.5GHz band spectrum to be reserved and allocated exclusively for satellite communications (satcom) services.

The COAI said “by allowing private captive networks for enterprises, telecom regulator Trai is dramatically altering the industry dynamics and hurting the financial health of the industry rather than improving it”.

“Telecom service providers have and going forward will invest lakhs of crore rupees in network rollouts. Enterprise services constitute 30-40 per cent of the industry’s overall revenues. Private networks once again disincentivises the telecom industry to invest in networks and continue paying high levies and taxes.”

The Broadband India Forum (BIF), the industry body of tech players such as Facebook and Google, welcomed the recommendations to allow private networks.

Home / Business / Telcos flay plan for private 5G networks

Telcos flay plan for private 5G networks

The Broadband India Forum (BIF), the industry body of tech players such as Facebook and Google, welcomed the recommendations to allow private networks
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R. Suryamurthy   |   New Delhi   |   Published 18.04.22, 04:17 AM

Spectrum users have started squabbling over the telecom regulator’s recommendation to earmark certain bands for captive wireless private networks.

The cellular operators under the COAI have opposed regulator suggestions of allowing enterprises to build their own private 5G networks for captive purposes.

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The suggestion has been welcomed by the Broadband India Forum (BIF).

Technology players such as Facebook, Google, Indian Space Association (ISpA) want the 28.5GHz band spectrum to be reserved and allocated exclusively for satellite communications (satcom) services.

The COAI said “by allowing private captive networks for enterprises, telecom regulator Trai is dramatically altering the industry dynamics and hurting the financial health of the industry rather than improving it”.

“Telecom service providers have and going forward will invest lakhs of crore rupees in network rollouts. Enterprise services constitute 30-40 per cent of the industry’s overall revenues. Private networks once again disincentivises the telecom industry to invest in networks and continue paying high levies and taxes.”

The Broadband India Forum (BIF), the industry body of tech players such as Facebook and Google, welcomed the recommendations to allow private networks.

“In terms of private networks, Trai’s recommendations are balanced and practical and address the interests of the telcos, the enterprises, as well as the public – since more private networks would lead to more employment opportunities and business, and in turn, translate into greater economic output and benefits,” BIF said.

The Indian Space Association (IsPA) said “we welcome Trai’s recommendation that calls for coexistence of satellite communications and IMT in the 27.5-28.5GHz band. We also appreciate recommending an exclusion zone for satellite earth stations in the 27.5-28.5GHz band.”

IsPA opposed the inclusion of all spectrum in the 24.25-28.5GHz bands along with low and mid bands in the auction as it was a case of oversupply to the telecom operators at the cost of the satellite industry.

“The 24.25-27.5GHz bands along with  3.3-3.67GHz bands would be more than sufficient for 5G. Therefore, in line with the global best practices, the 28GHz band should be allocated exclusively for satellite communications,” it added.

In its recent recommendations, telecom regulator Trai said spectrum in three bands – 3700-3800MHz, 4800-4990MHz and 28.5-29.5GHz band – could be earmarked for captive wireless private networks which, it felt, could co-exist with non-IMT services.

In the 28.5-29.5 MHz band, Trai said: “A software based transparent system should be built to permit the establishment of private networks and satellite earth Stations based on the geo-coordinates of the proposed location on interference free co-existence basis.”

The regulator added: “DoT should develop a digital map with geographic coordinates of all the existing and future satellite earth stations as well as geographic coordinates of the premises of Private Network locations. Based on this database, permissions for establishment of new installations may be provided to the licensees.”

https://www.telegraphindia.com/business/telcos-flay-plan-for-private-5g-networks/cid/1861119

References:

https://economictimes.indiatimes.com/industry/telecom/telecom-news/telcos-say-private-networks-will-kill-5g-business-case/articleshow/90806358.cms

https://economictimes.indiatimes.com/topic/telecom-regulatory-authority-of-india

https://economictimes.indiatimes.com/industry/telecom/telecom-news/5g-airwaves-pricing-reasonable-says-trai-chairman/articleshow/90810221.cms

Related:  IEEE/SCU SoE Panel Session on Open RAN and 5G Private Networks:

 

2 thoughts on “India Telcos say private networks will kill 5G business

  1. India’s telecom services providers have via the industry body COAI expressed disappointment with TRAI’s recommendations for auction of 5G spectrum bands.

    In a strongly worded reaction, COAI called the recommendation a “step backwards” than forward towards building a digitally connected India.

    COAI maintained that the spectrum pricing recommended by TRAI was too high, and noted that throughout the consultation process, the industry had presented extensive arguments based on global research and benchmarks, for significant reduction in spectrum prices. “Industry recommended 90% lower price, and to see only about 35-40% reduction recommended in prices, therefore is deeply disappointing,” it said.

    It added that charging a 1.5x price for spectrum for a 30-year period will nullify the relief provided by the Union Cabinet in 2021. The industry body pointed out that by introducing mandatory rollout obligations for 5G networks without factoring the huge cost of such a rollout, TRAI has “delinked itself from reality and is running counter to the Government’s efforts of enhancing ease of doing business”.

    On allowing private captive networks for enterprises, COAI argued that TRAI was dramatically altering the industry dynamics and hurting the financial health of the industry rather than improving it. Private networks would be a disincentive for the telecom industry to invest in networks and continue paying high levies and taxes, it contended.

    Reference:

    https://www.thehindu.com/business/Industry/explained-why-are-telecom-companies-upset-with-trai-despite-its-proposal-to-cut-spectrum-prices-by-40/article65326339.ece

  2. Private 5G networks will lead to increased productivity for enterprises and drive better revenues for telecom service providers, the Broadband India Forum (BIF) said, dismissing speculation that it will lead to revenue loss for telecom operators.In a letter to Department of Telecommunications (DoT) secretary K Rajaraman, BIF president TV Ramachandran said that telecom operators will still be deriving a major chunk of revenue from external network services, comprising voice and data communications.

    ET has reviewed a copy of the letter dated April 22.BIF counts Cisco, Amazon, Google, Microsoft, Facebook-owner Meta, Qualcomm and Intel among its key members.

    “Captive usage in the current situation would only contribute a minor share in processes/applications like robotics, automation, etc., due to challenges in delivering the required SLAs through public networks. Therefore, the speculated loss in revenues for telcos via enterprise services is a misplaced one,” Ramachandran said.

    https://economictimes.indiatimes.com/industry/telecom/telecom-news/pvt-5g-networks-by-enterprises-wont-hurt-telcos-bif/articleshow/91013834.cms

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