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Allowing telcos to set up private networks to benefit industry, Experts

TRAI’s decision to allow companies and institutions to own spectrum and run private networks will be a gamechanger in enterprise communications, though it may hurt telecom operators’ revenues, according to experts.

Ashish Aggarwal, Vice President, Head of Public Policy, Nasscom, said if the regulator’s moves are fully implemented, it could mean decoupling network availability and control from telecom service providers (TSPs). Consequently, “private networks — especially in industries with niche and specific requirements — are likely to benefit hugely from such a move. Enterprises engaged in automotive manufacturing, logistics service providers, ports and airports, healthcare institutions, etc. are increasingly adopting non-public networks, and this trend is likely to gain momentum going forward,” said Aggarwal.

Assigning spectrum
While the regulator has predictably allowed telecom operators to set up private networks, either on their public networks or through leasing spectrum to enterprises, it has also recommended that the Department of Telecommunications also administratively assign spectrum to enterprises, to set up their own captive wireless private networks (CWPN). For that purpose, the regulator recommended that DoT may earmark some amount of spectrum in bands — 3700-3800 MHz, 4800-4990 MHz and 28.5-29.5 MHz — for administrative assignment.

Experts predict that private networks will come out to be the fastest growing use cases for 5G, once the technology is rolled out. 5G will allow vendors to set up specific network infrastructure for enterprises and thus give enterprises targetted coverage for their needs. This could mean connected factories, installation of 5G networks in airports etc, all aimed at improving efficiencies and giving massive returns to enterprises; thus making enterprise telecommunication a major growth opportunity.

Opening up space
TRAI’s recommendations, if fully implemented, would mean that players besides operators such as Tata Communications Limited, Mavenir, ITC etc. can also enter into this space of offering enterprise communications.

In fact entities such as Sterlite Technology, Mavenir, ITC, Samsung, Cisco, and IT service companies (through Nasscom) have held the view that DoT should earmark and administratively assign spectrum to set up private networks directly.

“ITC should be allowed to build the private cellular network with their in-house capabilities for Industry 4.0 initiative to harness the full benefits to the economy in a time-bound manner,” said ITC.

‘Good for industry’
An expert told BusinessLine on conditions of anonymity, “TRAI’s recommendations will be good for the industry overall, as it will allow the entry of new players into the ecosystem. TSPs will not have monopoly over setting up private networks, thus allowing newer players, or enterprises themselves to set up their private networks.”

Operators who were hoping to block the entry of newer players into this space by advocating that they are the best-equipped to set up private networks might see a dent in their future revenues. The Hindu BusinessLine

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