Private 5G network in India struggles to find demand: COAI

Overview of Global Private 5G Network Market

Private 5G networks are non-public mobile networks that may use licensed, unlicensed, or shared spectrum. Private 5G networks are intended to improve existing capabilities while also introducing new possibilities that other systems cannot support. With the advent of private 5G networks, the telecom industry is undergoing a paradigm shift and providing businesses with numerous advantages over conventional public networks. Private 5G networks have the potential to completely transform company operations and push the limits of creativity as the need for dependable, secure, and fast connectivity grows.

According to a recent analysis by Polaris Market Research, the size of the worldwide private 5G network market is anticipated to reach USD 103,516.54 million by 2032. Private 5G network deployment across sectors is driven by the need for low-latency, secure connection in mission-critical applications. To increase production and operational efficiency, the mining, oil and gas, manufacturing, and energy sectors make significant investments in private 5G telecom services. Over the course of the forecast period, this is anticipated to support market expansion.

Recent developments in Private 5G Network market in India

Despite the fact that 5G has been available in the country for two years, enterprise adoption of private networks has been gradual. One reason for this is a lack of compelling use cases, notably in the internet of things (IoT) area, which has not seen much adoption. Additionally, many businesses have discovered that 4G networks and Wi-Fi solutions are adequate for their automation and connectivity requirements. Thus, India still happens to be in the early stages of private 5G development.

Telecom companies in the country feel they can best assist enterprises in gaining access to private 5G networks. Meanwhile, organizations or businesses feel that having access to the spectrum will allow them to set up their own private 5G network. This has led to a battle between telecom operators and corporations over private 5G networks. While telcos formerly opposed direct spectrum allocation to corporations for the purpose of establishing captive networks, they now reject any type of licensing or authorization system for enterprises to develop such networks.

The newest flashpoint stems from a recent communication by the Telecom Regulatory Authority of India (TRAI) to the Department of Telecommunications (DoT) asking feedback on whether firms should be allowed an authorisation framework to develop private 5G networks. If authorized, certain terms would need to be included in the Telecommunications Act.

Telecom companies state that private 5G networks are unnecessary in India, as telecom coverage is widespread. They argue that captive private networks are only relevant in countries with large, sparsely inhabited regions that lack dependable public communication infrastructure.  In India, where public networks already provide ubiquitous connection, telcos argue that there is no reason for corporations to construct their own 5G networks.

The Private 5G network battle

The Cellular Operators Association of India (COAI), which represents Reliance Jio, Bharti Airtel, and Vodafone Idea, stated that Captive Private Networks (CNPNs), which are primarily required in geographically vast and sparsely populated regions where public telecom connectivity is limited or non-existent, are not applicable in the Indian ecosystem.

The announcement comes only days after the Telecom Regulatory Authority of India (TRAI) issued its latest recommendations on network authorizations under the Telecommunications Act of 2023. TRAI has proposed a separate authorization framework for CNPN providers under Section 3 of the Act, with the goal of building, maintaining, operating, and growing networks for companies. The Act enables the government to assign spectrum administratively to entities involved in defense, law enforcement, broadcasting services, disaster management, navigation, telemetry, in-flight and marine connectivity, mine safety, port operations, and oil exploration, among other things.

Furthermore, technology companies claim that telcos’ objection derives from a fear of losing revenue in the lucrative private 5G market. If corporations are permitted direct spectrum allocation and authorization, they may bypass telecom carriers, resulting in revenue losses for the latter. However, IT firms contend that it is not cost-effective to rely on telecom providers for private 5G implementation. They also draw attention to the dangers of disclosing private company information to outside service providers.

Conclusion

There has been slow uptake regarding private 5G in India because of a shortage of use cases and the availability of 4G and Wi-Fi alternatives. One critical problem is the conflict of spectrum allocation between telecom carriers and companies. Businesses expect to have direct spectrum access for their owned networks, and telecom providers argue that private networks are not necessary. The outcome of the regulatory discussions will determine the state of private 5G in India.

The image added is for representation purposes only