The Department of Telecommunications (DoT) is planning to introduce regulations regarding frequency leasing for unlicensed private networks, enabling telecommunications operators to diversify their sources of income, especially for the utilization of the Internet of Things (IoT) and the commercialization of 5G. According to official information, telecommunications companies that acquired frequencies through auctions will have the opportunity to lease radio waves for unlicensed private networks. The revenue generated from such leases will be included in their gross income, which forms the basis for calculating licensing fees and frequency usage charges.
Guidelines for leasing the freed frequencies for unlicensed private networks (CNPN) have been finalized, and the regulations will be announced soon, an official revealed. Leasing 5G frequencies for private networks is expected to benefit companies like Reliance Jio and Bharti Airtel, which are preparing for nationwide 5G service deployment this year. Experts believe that this step will help these companies commercialize the high-speed capabilities of 5G, which is up to 100 times faster than its predecessor, 4G.
According to DoT regulations, private network operators can obtain frequencies from one or more telecommunications operators on mutually agreed terms. Details such as frequency bands, number of radio waves, duration of lease, and geographical coverage must be submitted to DoT through the Saral Sanchar portal. Furthermore, private network operators must obtain approval from the Standing Advisory Committee on Frequency Allocation (SACFA) before commencing operations and ensure that the leased frequencies do not interfere with the functioning of any public networks.
The Council of Ministers approved the establishment of private networks as one of the applications of 5G in 2022. Although options for acquiring frequencies, including direct allocations from the government, have been provided to private networks, DoT has not yet issued regulations on this matter. The issue of direct spectrum allocation has sparked a debate between technology companies and telecommunications operators, with the latter expressing concerns about potential disruption of fair competition and enabling technological entities to access the 5G service market through backdoors. On the other hand, technology companies argue that they should have direct access to frequencies from the government, independent of telecommunications operators.
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