Telecom firms oppose direct spectrum allocation for private 5G networks
What's the story
The Cellular Operators Association of India (COAI) has opposed the idea of direct spectrum allocation to enterprises. The industry body of telecom companies cited cost burden, regulatory parity, and security-related concerns as reasons for its stance. Instead, COAI advocates that licensed Telecom Service Providers (TSPs) should meet enterprise 5G needs through spectrum leasing or network slicing.
Concerns raised
COAI warns of jeopardizing national security
COAI, which represents telecom operators like Reliance Jio, Bharti Airtel, and Vodafone Idea, has raised concerns over direct spectrum allocation. The association believes that this move could jeopardize national security and revenue protection. It also fears it might disrupt the regulatory balance in a rapidly evolving ecosystem. SP Kochhar, Director General of COAI, said most industrial corridors and enterprise zones are already well-served by telecom operators in India.
Cost worries
Setting up private networks independently may not be cheaper
COAI has also challenged the notion that setting up private networks independently shall be cheaper for enterprises. The association argues that deploying a private 5G network actually involves huge capital expenditure on equipment, spectrum management, security, network maintenance, as well as skilled personnel. "What appears cheaper on paper could turn out to be more expensive and operationally burdensome in practice," it said.
Risk assessment
Radio frequencies can't be geographically contained
COAI has also pointed out that radio frequencies cannot be geographically/physically contained. This means signals from private networks could spill over beyond their intended premises, possibly interfering with public mobile networks operated by licensed TSPs. The association warned such scenarios might pose risks to network reliability, service quality and user experience on both sides.
Security
Risks from unlicensed foreign entities
COAI has raised alarms over national security risks posed by private networks run by unlicensed or foreign entities. These players are not bound by the same compliance, interception and regulatory obligations as TSPs. The association warned such an arrangement could dilute the state's ability to ensure lawful interception, user traceability, and emergency response coordination.