The successful pilot of Airtel’s dedicated 5G network inside Bosch’s RBAI manufacturing campus, situated in Naganathapura, Bengaluru, marks a notable waypoint in India’s steady march toward deeper digitalisation of its factory floor. By putting in place a self-contained 5G environment, the project has demonstrated that fast and predictable connectivity can be fine-tuned to match the exacting requirements of industrial operations, ranging from robotic assembly lines and automated guided vehicles to immersive quality control diagnostics. Similarly, a parallel initiative is under way at Sundaram Clayton Limited (SCL), which is striving to build a leaner, greener and fully networked plant. SCL’s engineers defined the functional blueprint, with L&T Technology Services serving as the systems integrator, and Airtel delivering the private network layer. Additionally, in partnership with Rockwell, Jio’s Private 5G and Industry 4.0 solutions are powering smart factories with dedicated high speed networks, enabling real-time coordination between physical and digital systems. All these projects confirm that private networks can transform the enterprise segment by enabling real-time analytics, closed-loop process control and energy-optimised production.
To facilitate the adoption of private networks and enable broader enterprise use, the Government of India has introduced guidelines for setting up captive non-public networks (CNPNs). A CNPN is, in essence, a communications layer that an organisation builds for its exclusive internal consumption instead of supplying connectivity to the public.
In a typical arrangement, the entity that installs and maintains the radios, core and edge infrastructure is called the CNPN provider. CNPN is covered by India’s regulatory framework for private 5G networks, requiring licensed spectrum and compliance with Department of Telecommunications (DoT) guidelines. In contrast, “private 5G” is used more broadly across global markets, often allowing for more flexible deployment models, including the use of unlicensed spectrum.
CNPN is expected to play a key role in automation and Industry 4.0 by providing secure, ultra-reliable, low latency and high-throughput communication using advanced technologies. CNPNs offer enhanced security by limiting exposure to public networks, and are scalable and adaptable, helping industries improve efficiency and achieve economies of scale.
Story so far
DoT, in 2022, released the first formal framework for setting up CNPNs. The guidelines, which were published soon after the Telecom Regulatory Authority of India (TRAI) issued its recommendations titled “Auction of Spectrum in Frequency Bands Identified for IMT/SG” (dated April 11, 2022), mainly outlined the process for setting up new CNPNs, categorising it into four main scenarios:
- Network slicing on a public network: A licensed telecom service provider (TSP) can carve out a logical slice of its public land-mobile network for an enterprise. The slice behaves like a private network, but day-to-day upkeep, security patching and technology refresh remain the responsibility of the TSP.
- Isolated CNPN built by a TSP: A TSP uses its own spectrum to erect a physically segregated network on a customer’s premises, retaining ownership of the airwaves while relieving the enterprise of regulatory compliance burdens.
- Enterprise-built network on leased spectrum: An enterprise leases spectrum from a TSP and deploys all infrastructure on its own, either directly or via an integrator, thereby maximising control but also dealing with increased cost and complexity.
- Enterprise-built network on DoT-allocated spectrum: An enterprise secures airwaves directly from DoT and rolls out a completely self-managed network.
- The rest of the guidelines are intended to operationalise the above. The licence, as per the guidelines, will be valid for a period of 10 years.
However, even after a regulatory push from the government, CNPN has failed to pick up the expected pace in India. So far, only Adani Data Networks, a subsidiary of the Adani Group, has bought the necessary spectrum for DoT to launch its own private 5G services. Back in 2022, right after the guidelines were released, the Adani Group acquired 400 MHz in the 26 GHz band for Rs 21.2 billion, with allocations of 100 MHz each in Gujarat and Mumbai, and 50 MHz each in Andhra Pradesh, Rajasthan, Karnataka and Tamil Nadu. However, having failed to launch its private 5G services since then, the group has faced multiple notices from the government over the past three years, deeming it non-compliant with minimum roll-out obligations for 5G services in India. In April 2025, Bharti Airtel and its subsidiary, Bharti Hexacom Limited, entered into a definitive agreement with the Adani Group to acquire the rights to this spectrum to enhance its fixed wireless access connectivity in six of its circles. The deal is subject to satisfaction of the standard conditions and statutory approvals. However, it puts all speculations regarding Adani entering the consumer telecom sector to an end.
Why the low adoption?
Several factors account for the muted uptake of the CNPN license in India. First, the eligibility bar is set too high. DoT insists that any applicant seeking direct spectrum allocation must have a net worth of at least Rs 10 billion, effectively excluding most small and medium enterprises (SMEs) – the very firms that are most likely to innovate with private 5G. Equally discouraging is the cost of spectrum itself. The substantial upfront fees and ongoing charges for leasing airwaves from a TSP can render CNPN deployments uneconomical, even for large companies operating on tight margins. Limited understanding of how to plan, deploy and operate these networks, coupled with a paperwork-heavy, often opaque application process, is further dampening the adoption of CNPN for Indian enterprises. Finally, technological requirements and the need to constantly upgrade equipment may not particularly fit with the core operations of the firms deploying private networks.
TRAI’s recommendation
In February 2025, TRAI came up with a new recommendation on the Terms and Conditions of Network Authorisations to be Granted Under the Telecommunications Act, 2023. The regulator has recommended that CNPN be introduced under Section 3(1)(b) of the Telecommunication Act, 2024. As per TRAI, this move can help tackle the low adoption rate that CNPNs are facing in India, by enabling third-party entities to establish, maintain, operate and expand CNPN networks for enterprises.
Industry experts believe that approving TRAI’s recommendation would allow enterprises to deploy private 5G networks at lower costs, boosting interest from companies such as Infosys, Tata Communications and L&T, which have long advocated for independent 5G set-ups.
Industry reaction
The TRAI recommendation has intensified the debate over the CNPN regime introduced in 2022. The industry has seen a mixed reaction to the CNPN guidelines since they were launched, with many believing that there was no need for DoT to introduce these guidelines in the first place.
In a recent statement, the Cellular Operators Association of India (COAI) argued that India’s extensive telecom footprint already places the country among the world’s digital leaders. It now has a few areas with poor coverage, and therefore, the case for CNPNs in the country is weak. Domestic TSPs can already deliver high speed, reliable 5G that satisfies most enterprise service-level agreements, that too at normal operating costs. As these robust networks are run end to end by TSPs, enterprises are also able to avoid the burden of managing a complex system outside their core expertise. Indeed, several companies that initially built private networks have since returned to TSP-managed connectivity after facing operational hurdles.
COAI also emphasised the challenge of technology upgrades. Telecommunications equipment move quickly through upgrade cycles, and TSPs are equipped, and financially motivated, to keep pace. Captive networks, by contrast, may struggle with the high cost of continual modernisation, heightening the risk of obsolescence and security vulnerabilities if the hardware and software are not updated regularly. Further, COAI argues that if the market truly needed an additional license category, uptake would already be visible. Instead, the current scenario reflects the negligible demand for CNPNs in an already well-established and saturated Indian telecom market. The stalled Adani roll-out underscores this view.
Finally, COAI questioned whether a captive network can ever remain truly isolated. Enterprises inevitably need to exchange data with other sites, headquarters and external partners. Unlike TSP-provided services, an isolated CNPN does not inherently connect to the public switched telephone network or the wider internet. Rather than creating islands of connectivity, COAI contends that policy should focus on strengthening the national telecom infrastructure that fuels broader industrial growth.
The future of CNPNs
TRAI remains confident that CNPN adoption will accelerate over time, but the critics are unconvinced. Stakeholders believe momentum could be built if several changes are made, including, but not limited to, streamlining the application process to attract more enterprises, especially SMEs. Revisiting the Rs 10 billion net worth threshold and adopting a tiered approach for smaller firms could also prove beneficial in setting up the new systems. Subsidising spectrum for sectors such as healthcare, manufacturing and agriculture, where private 5G could deliver large productivity gains, can help with the initial uptake. Finally, running DoT-led awareness campaigns with industry bodies and TSPs (for instance, at the India Mobile Congress) to showcase CNPN benefits would further increase reach, educating the masses at the same time. If all of the above is done in a strategic manner, CNPNs could become a new strategic pillar of India’s transition to Industry 4.0. Otherwise, public network 5G, which is already extensive and continually upgraded by TSPs, may continue to satisfy most enterprise connectivity needs, making CNPNs a niche solution.
Shashwat Singh
