The Cellular Operators Association of India (COAI) has stated that direct spectrum allocation to private enterprises is “not tenable” in the Indian context, pointing to its potential impact on the telecom ecosystem, national revenues, and security infrastructure.
“COAI believes that direct spectrum allocation to enterprises is not tenable in India because of various reasons pertaining to India’s telecom ecosystem, the national revenue as well as security architecture,” said Lt. Gen. Dr. S.P. Kochhar, Director General, COAI.
Recently, the Department of Telecommunications (DoT) has initiated a fresh demand survey to assess interest in assigning 5G spectrum directly to enterprises for setting up private networks. If approved, the move could enable large firms to bypass telecom service providers (TSPs) for high-speed, automated connectivity within their campuses and factories.
The DoT said the study aims to identify prospective frequency bands for the direct assignment of spectrum for captive non-public networks (CNPN) based services. Enterprises with a net worth exceeding Rs 100 crore, willing to set up CNPNs by obtaining spectrum directly from the DoT, are eligible to participate, along with system integrators interested in building CNPN networks for such enterprises.
According to the association, comparisons with countries such as the US, Finland, Germany, and the UK overlook a key distinction, many of their private networks operate in remote or geographically isolated areas with limited public network coverage. In India, most industrial and enterprise hubs already have adequate telecom operator coverage, eliminating a coverage gap.
The COAI also contested claims that private 5G networks would be more cost-effective for enterprises. It noted that such networks require significant capital expenditure for equipment, spectrum management, security, maintenance, and skilled personnel—costs that could outweigh perceived savings. In addition, continuous technological upgrades would add to operational complexity, something telecom service providers (TSPs) are better equipped to manage.
On the technical front, the body argued that licensed TSPs, with their 5G capabilities, service-level agreement experience, and access to network slicing, are well-positioned to provide private network services. It also warned that radio frequencies from private networks could spill beyond intended premises, risking interference with public networks, which is a challenge that TSPs can better control.
The association further pointed to potential revenue losses for the government, highlighting that spectrum auctions generated Rs 1.5 lakh crore in 2022. Allowing private entities direct access to spectrum, it said, could create an uneven playing field, as such players would benefit from infrastructure without facing equivalent regulatory or financial obligations.
Most critically, COAI flagged national security concerns, warning that unlicensed or foreign-managed private networks would not be subject to the same compliance, interception, and regulatory requirements as TSPs. This, it said, could undermine lawful interception, traceability, and emergency response capabilities, exposing India to cybersecurity and diplomatic risks.
“COAI strongly believes that all enterprise 5G needs must be fulfilled through licensed Telecom Service Providers via spectrum leasing or network slicing as this would ensure national security, revenue protection and regulatory parity in this rapidly evolving ecosystem. The future of India’s digital economy must be built on secure, inclusive and accountable networks and Indian Telecom Service Providers stand ready to deliver private 5G solutions under appropriate regulatory supervision,” Kochhar said.
