According to Lt Gen Dr S.P. Kochhar, director general, Cellular Operators Association of India (COAI), the pre-requisites for industrial units to commence operations with or without proper telecom solutions include industrial setup, physical infrastructure, roadways to the facility, supply of ingredients, workforce, power, and logistics, among others. The telecom infrastructure, if absent despite all these facilities being present, would create a serious miss. However, in India, such a situation is not faced anywhere. If at all, in some exceptional mountainous regions, large water bodies or Naxalite-affected areas, which do not have the above-mentioned facilities either.
Therefore, Captive Private Networks or Captive Non-Public Networks (CNPNs), which are primarily required in geographically vast and sparsely populated regions where public telecom connectivity is limited or non-existent, do not really apply in the Indian ecosystem. India with its extensive telecom coverage across the entire and diverse demographic, has positioned itself among the global leaders in digital connectivity.
Importantly, with the prime minister of India, Narendra Modi’s vision and drive to enable 5G connectivity to all corners of the country, the private networks derived from the Telecom Service Providers (TSPs) can meet the SLAs of the enterprises at operational costs only, via technically robust networks deployed and operated by them, without the additional burden on the enterprise to manage a complex network which is outside their domain of expertise. In fact, it must be noted that several companies that initially attempted to set up and maintain private networks have ultimately reverted to TSPs for network management, recognising the complexity and operational challenges involved.
Given India’s widespread telecom penetration, the need for enterprises to establish private networks is virtually non-existent. In fact, according to Telecom Regulatory Authority of India (TRAI) in its recommendations on the “Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023” dated February 17, 2025, “Though the licensing framework for CNPN was put in place in June 2022, the CNPN services have not picked up”.
India’s licensed TSPs are fully equipped to meet enterprise demand for 5G applications through advanced solutions such as spectrum leasing and network slicing within their existing public networks, to handle different types of traffic simultaneously. This model ensures the efficient utilisation of a critical national resource while preventing unnecessary fragmentation of spectrum that would arise from setting aside dedicated frequencies for private captive networks.
Another important aspect is that of technology refresh. The rapid technological advancements in telecom necessitate continuous upgrades and modernisation, an effort that TSPs undertake efficiently. In contrast, captive private networks may struggle to keep pace due to the high costs associated with continuous technological refreshes. The risk of technological obsolescence is significant, as outdated hardware and software can become vulnerable if not subjected to regular updates and security patches.
Moreover, it is impractical to suppose that the operations and outcomes of a captive private network, would remain locked and not be used thereafter for communications with the external world, other offices, HQ, etc. as the isolated captive private network does not eventually connect to the external network/PSTN, in contrast to the ones provided by TSPs.
Instead of creating isolated networks, efforts should focus on strengthening the broader telecom infrastructure that fuels industrial growth. Contributions to initiatives such as the Digital Bharat Nidhi (formerly USOF) can enhance connectivity in the few remaining underserved areas, fostering nationwide digital inclusion.
India stands at a pivotal moment in its digital evolution, with 5G rollouts unlocking unparalleled economic opportunities. Policymakers must take a measured approach to regulatory decisions, ensuring they align with the nation’s long-term economic and technological interests.
