The Department of Telecommunications (DoT) may seek the law ministry’s opinion over spectrum allocation to enterprises for rolling out private captive networks.
The DoT will likely enquire on whether the spectrum is to be given administratively or through auction.
In June 2022, the Union Cabinet approved direct allocation to enterprises but did not specify the process for distribution.
DoT officials will ask for clarity from the law ministry on the same. The department is seeking clarity as it doesn’t want to go against the 2012 Supreme Court order on spectrum allocation.
In 2012, the apex court passed an order saying that auction is the preferred way for allocating spectrum for commercial purposes.
Notably, private networks are not permitted to deliver commercial telecom services.
The DoT is being ultra-cautious in this matter as this has pitched telecom giants like Reliance Jio and Bharti Airtel against tech giants like the Tata Group.
What makes the issue of direct allocation of spectrum to enterprises a contentious one, is that telcos have opposed the direct allocation of spectrum to technology firms. Telcos allege that with access to spectrum, tech companies may get a backdoor entry into the telecom market as they may start providing 5G services to enterprises.
Tech firms have sought direct access to spectrum from the government to set up captive networks to reduce dependency on telcos.
Under present DoT guidelines on private networks, companies which want their own captive network can lease spectrum from telecom operators or get it directly from DoT. Enterprises can also ask telecom operators to roll out private networks for them.
Infosys, GMR, Larsen & Toubro, Tata Power and Tata Communications are among the enterprises that have applied to DoT for direct allocation of spectrum, including in the mid-band (3,300-3,670 MHz), for private networks.
