BIF comments on Private 5G Networks

In an exclusive interview, TV Ramachandran, President, Broadband India Forum (BIF) elucidates on his stand on the Private Networks debate.

On the anticipated DCC proposal to not allow administrative spectrum allocation for Private 5G Networks.
“There has been no official announcement on the DCC’s decisions. However, if we assume that the media reports are right about DCC deciding not to go ahead with administrative allocation of Spectrum for Private 5G Networks, it would be a matter of great disappointment. We feel that this could prove to be a huge setback to India’s broader ambitions to digitalise its industry, healthcare, academia, transportation, logistics hubs, agriculture processes, amongst others. It would also upset the present opportunity to leverage our geopolitical advantage toward enhancing the manufacturing abilities of India to meet global levels. We however, remain hopeful that the Government will keep in mind the overall digital aspirations and interests of the nation, and take a well-considered and informed decision in this regard.”

On the notion of revenue losses to telcos on account of Private 5G Networks.
“It is a mistaken view that Private 5G Networks would lead to revenue losses for the telcos. For telcos in the existing scenario, revenue from captive usage would be nominal, as most of their enterprise revenues are gained through external communications. The Captive 5G networks envisaged are not connected to external networks (PSTN/PLMN), are not Public Networks, have no market customers, and are limited to a specific location. Hence the enterprise businesses of telcos will remain fully protected, even with the introduction of Private Networks.

In fact, some of the figures being suggested in terms of the revenue losses from enterprise business of telcos due to Private 5G Networks seem to be somewhat exaggerated. The TRAI would be well-aware of the correct figures and the content of captive usage revenues in that. We believe the prudent recommendations of TRAI for allowing Private 5G Networks have been made keeping the same in consideration.

In actuality, a more efficient captive network through Private 5G would lead to increased productivity for the enterprise, which would help grow business activities/communications, thereby driving better revenues for the TSPs. E.g. a 5G NPN in P&G would drive business efficiencies, whereby activities would be enhanced, and more co-ordinations would lead to enhanced traffic to be carried by TSPs through the external network. New enhanced revenue streams could flow to the telcos.”

Why India needs Private 5G?
“5G is the first efficient G to service non-telecom verticals in the most efficient manner. India needs higher efficiencies in verticals like Manufacturing, Healthcare, Education, Agriculture, Financial Inclusion and many others to kick-start and accelerate the process of digital transformation, which is a National Priority. Moreover, India is determined to leverage the current geo-political advantage and establish the nation as a leading global manufacturing and supply chain hub, by augmenting efficiencies and productivity in these vital sectors. These goals can best be achieved through Private 5G Networks.

Many leading economies across the world have already implemented and are running operational 5G networks for nearly 2 years now. USA, China, Korea, Japan, Germany, UK, France, Australia, Netherlands and Hong Kong are some of the leading countries/territories with deployment of Private 5G Networks. It cannot be that everyone else in the world is wrong in understanding the impact and benefits of Private 5G. I think the results achieved in terms of efficiencies and productivity by these nations themselves are testament to the effectivity of this technology and its merits.

Learnings from the past deployments of 3G/4G indicate that it is most likely to take at least 5 years for a significant country-wide public 5G network to be operationalised effectually in India. It could even take longer for 5G due to the complexities involved – including extensive preparation work required for network architecture and optimisation, fibre laying – both to towers and intra-city, streamlining of RoW procedures, street furniture readiness, etc. We simply cannot afford to stay behind in the meanwhile, and 5G NPNs provide India an excellent opportunity to catch up with the world and showcase early adoption of 5G across several different verticals – be it healthcare, education, manufacturing, or more, and extracting its manifold benefits therein. Besides, learnings from the use of Private 5G Networks can be used to build competence and significant expertise, and further be leveraged for wider deployment of our nation-wide Public network.”

Why Indian enterprises need Private 5G?
“Public Telecom Network set up by a telecom licensee would necessarily be an ‘average’ network – aimed to meet the mean quality needs of a diverse population. It would be ‘tunable’ only to a limited extent to meet specific enterprise ‘QoS’ needs. Hence, definitely not geared to meet higher SLAs and specific SLAs that are characteristic of specific industry verticals. For example, the needs and requirements would be quite different of a Maruti-Suzuki automotive factory from that of an Apollo Hospital or of an IIT Delhi campus, and so on.

In fact, these may even vary within the same vertical, for example, the specific needs of a Honda factory may be different from that of a Toyota. A Maruti or an Apollo would know its system and requirements far better than anyone else, and therefore, would be able to customise and design the network and applications accordingly.

Private 5G will provide an improvement over the average SLAs of Public Networks, besides complete lack of interference between them. This will, in turn, accelerate Digital Transformation of Enterprises to Industry 4.0, and boost both ‘Atmanirbharta’ & ‘Make in India’.”

Are the TRAI recommendations on Private 5G holistic in approach?
“TRAI’s recommendations on Private 5G networks are comprehensive, balanced and practical, and address the interests of the TSPs, the enterprises, as well as the public – since more private networks would lead to more employment opportunities and business, and in turn, translate into greater economic output and benefits. As Private 5G Networks can be set up and operated by TSPs, Equipment Providers, Infra players or Enterprises – it is a Win-Win for All!!”

What about non-urban and rural areas of the country?
“Due to reasons of economic viability, public 5G is expected to initially get rolled out only in densely populated urban areas where demand is very high, to cater to the additional data traffic requirements, and permeate to other areas gradually. This has been the traditional way for all earlier Gs, and has even been pointed out by ITU , that 5G will actually worsen the digital divide initially, as it will not be rolled out in less profitable areas, and the haves and have-nots will be separated at this stage significantly. As 5G is going to be a more expensive technology, it will naturally address the creamy layer in the urban areas in the beginning. But does that mean non-urban areas get left behind in the meanwhile? Private 5G Networks, being akin to islands of 5G connectivity, can help address this problem for several sectors.

The utility and applicability of 5G is equal, or perhaps even more in non-urban/semi-urban/rural locations because of its need for improving efficiencies in verticals like agriculture, manufacturing, healthcare and other segments, for yielding better outputs in a more cost-efficient manner. It would be most unreasonable to expect public 5G networks to be rolled out in these remote/rural areas in the initial years. Therefore, Private 5G Networks can be set out concurrently, so that they don’t miss the bus in its wait. For e.g. a state-of-the-art manufacturing facility in a lesser known place like Haldwani or Chapra or Malda could achieve high efficiencies and productivity through Private 5G. This would boost the rural industries and even lead to greater employment opportunities.”

BIF represents the wide broadband ecosystem in the country in a holistic and technology-neutral manner – with varied players, including broadband/internet service providers, satellite operators, technology companies, startups and top academic institutions.

CT Bureau