The Department of Telecommunications (DoT) has initiated a fresh demand study to evaluate the potential for setting up private 5G networks through direct spectrum allocation to enterprises, three years after a similar exercise in 2022. The earlier study had attracted interest from over 20 companies, including Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power, and Tejas Networks. However, the initiative was shelved at the time due to an underdeveloped device ecosystem.
Similar to the 2022 scenario, telecom operators are opposing the direct 5G spectrum allocation, urging the government to ensure that private networks are either deployed by telcos themselves or through spectrum leased from them. The Cellular Operators Association of India (COAI) warned that direct spectrum allocation to enterprises could lead to spectrum fragmentation and enable commercial services without appropriate regulatory oversight or financial obligations.
In contrast, tech firms and system integrators argue that the DoT’s approach reflects an effort to delay direct spectrum allocation in order to safeguard telcos’ spectrum holdings. They maintain that private 5G spectrum is essential for industrial use cases and point to international precedents. The Broadband India Forum (BIF) cited countries such as the US, Germany, China, Finland, Australia, and Denmark, which permit direct licensing or leasing of spectrum for private networks. BIF added that private networks in India would require only limited spectrum, often around 100 MHz, for internal operations and would not interfere with public networks.
DoT, in its rationale for the fresh study, acknowledged that the ecosystem for captive private networks has improved, especially in the International Mobile Telecommunications (IMT) band used for mobile telephony, and noted growing interest from system integrators. It highlighted the technological advancements in 5G and the emergence of various enterprise use cases such as automation, healthcare, and logistics.
The department has invited applications from enterprises with a net worth exceeding Rs 1 billion and from system integrators interested in establishing captive non-public networks (CNPNs). The last date for submission was July 31, 2025.
