5 companies in race for 5G private network licence

Major enterprises have commenced taking the first steps to deploy private 5G networks in India. According to top sources at the Department of Telecommunications (DoT), five companies have applied for the Captive Non-Public Network Licence with the DoT. The licences have been applied for 20 geographical locations by the five companies. These companies could be Indian IT majors such as Tata Consultancy Services, Infosys and Wipro. Industry insiders also note that Indian multinational conglomerate Aditya Birla Group could also be in the fray.

The source also added that an internal committee at the DoT has completed its report on the demand studies for private network players. The report likely identifies spectrum bands, which the department might allocate to companies directly.

According to reports, firms such as Tata Communications, Tata Power and Tejas Networks have applied to the DoT for direct allocation of spectrum. The report contains the DoT’s decision on this matter.

At present, companies can establish private networks either by availing CNPN-as-a-service from licensed telecom operators or by obtaining a CNPN licence themselves and leasing spectrum either from a TSP or the government directly. Therefore, even as companies await DoT’s decision regarding whether the allocation of the spectrum from the government will be applied, they have already started applying for licences in 20 locations.

According to the eligibility requirements for the CNPN licence, the applicant must be an Indian company registered under the Companies Act 2013, and should be the occupant of the area where this licence will be leased. Furthermore, in case the applicant is seeking direct assignment of the spectrum from the government, its net worth should not be less than Rs. 100 crore. The validity period of the licence is 10 years.