NEW DELHI: The Department of Telecommunications (DoT) will soon notify rules around leasing of spectrum to captive private networks, a move that will open another revenue stream for telecom operators, particularly for 5G monetisation.
Telcos that have bought spectrum through auctions will be able to lease airwaves to captive non-public networks or private networks and the revenue earned through such leasing should be counted in their gross revenue, officials told ET.
Gross revenue is the basis for calculating a carrier’s license fees and spectrum usage charge.
“We have finalised the guidelines for leasing of liberalised spectrum by telecom firms to CNPN (captive non-public networks) licensees and will soon notify the rules,” an official said.
Telecom operators have been struggling to monetise 5G due to a lack of demand for enterprise use cases. Retail customers have been using 5G virtually free of cost since the launch in October 2022.
But, now, leasing of 5G spectrum to private networks will help Reliance Jio and Bharti Airtel – which are on course to complete nationwide rollout of 5G services this year – to monetise the fifth-generation mobile technology that is up to 100 times faster than 4G, experts said.
As per the rules prepared by DoT, any private network holder can obtain spectrum from one or more telecom firms on mutually agreed terms depending on their requirement, officials said.
“The telcos should submit the details of spectrum bands, quantum of airwaves, period of lease, geographic area of lease, etc, to DoT on the Saral Sanchar portal within 15 days of entering into leasing pact with a CNPN license holder,” the official cited above said, citing the rules.
The private network operator should get clearance from the standing advisory committee on frequency allocation (SACFA) prior to starting operations. Further, the parties should ensure that while using the leased spectrum, no interference is caused to any public network.
The Union cabinet in 2022 had approved setting up private networks, which is a classic use case of 5G. Among the options given for meeting spectrum needs, the private networks were allowed to get the airwaves on lease from telecom firms. While the cabinet had also approved direct spectrum allocation to private networks, the DoT is yet to come out with rules for the same.
The issue of direct allocation of spectrum to enterprises has been a contentious one, pitting technology firms against telecom operators. Telcos have opposed any direct allocation, alleging that it would distort the level-playing field and give technology players a backdoor entry to provide 5G services to enterprises.
Tech companies have been demanding spectrum directly from the government for setting up captive networks, saying they should not need to depend on telcos.
Source: The Economic Times
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