The Department of Telecommunications (DoT) has issued guidelines to facilitate spectrum leasing, thereby allowing telcos to lease spectrum to companies to set up captive non-public networks (CNPNs). The move aims at facilitating industry 4.0 use cases like machine-to-machine (M2M) communications, mobile edge computing, etc.
The guidelines issued by DoT allows private companies to obtain IMT spectrum from one or more telecom service providers (TSPs) with access service license on mutually agreed terms and conditions. Meanwhile, as per the guideline, the telcos and private companies leasing spectrum have to ensure that there is no interference caused to any public network or any other licensed user of spectrum. Further, TSPs will have to submit the details of spectrum bands, quantum of spectrum in each band, period of lease, geographic area of lease, geo-coordinates of the logical perimeter of the defined premises, and use of spectrum to DoT within 15 days of entering into the leasing agreement.
Also, enterprises setting up private captive networks can obtain spectrum directly from the DoT. TSPs are also allowed to offer captive networks as a service to enterprises through network slicing over its public network. In order to obtain spectrum directly from the government, the DoT will undertake demand studies, and seek recommendations from the Telecom Regulatory Authority of India (TRAI) for direct assignment of spectrum to such enterprises. In addition, enterprises seeking spectrum directly from the telecom department would be given a renewable licence for 10 years against a non-refundable application charge of Rs 50,000. Such companies will be exempted from paying any entry or licence fee.
Besides, the directive further noted that the companies leasing spectrum to set up captive networks will have to obtain online clearance and import certificate from Standing Advisory Committee on Frequency Allocation (SACFA). The guidelines also state that the revenue earned by TSPs through leasing spectrum will form part of its gross revenue.
According to the guidelines for setting up CNPN released by DoT, entities that apply for spectrum need to have a minimum net worth of Rs 1 billion. The applicant must be registered under the Companies Act and an occupant of the geographical area/property on which it intends to establish the CNPN.
