the story So Far: on Wednesday, Union Cabinet approves auction of 5G spectrum bandsand said it has reserved a portion of the airwaves for captive private networks, a proposal opposed by telecom service providers. Auction of airwaves above 72 GHz To be held by the end of July.
What is the ball rolling for 5G technology in India?
The world’s second largest telecommunications market is one of the few major countries without 5G service. The central government’s delay in auctioning spectrum bands is the result of rounds of consultations with various stakeholders to decide on the bands that can be sold, block size and reserve price. Telecom service providers are all set to commercially launch 5G for the customers. In January, Reliance Jio said it completed its next generation network coverage plan for around 1,000 cities in the country. A year ago, Airtel demonstrated 5G on a live commercial network in Hyderabad. Prior to the merger with Idea, Vodafone said in 2017 that it had “upgraded the entire radio network to all-IP technology, even ready for 5G.”
What are captive private networks and why do they need spectrum bands?
Private wireless networks are cellular networks built specifically for individual enterprises. These networks are often deployed in a single unit, for example a factory. They can also be used in a wide area setting, for example to monitor a mine in real time. Airports and seaports may also have their own private 5G cellular networks to process the imaging data coming from surveillance cameras to manage the facility. Many enterprises around the world are working on setting up private 5G networks as they provide reliable, fast and secure wireless communication.
More than half said they plan to deploy a private 5G network within six-24 months, according to an Economist Impact survey of 216 technology executives in Germany, Japan, Britain and the US. This tops the nearly 30% of executives who are already deployed or in the process of deploying private 5G networks in their organizations. The main reason for this adoption is the need for greater data privacy and security. Unlike unlicensed Wi-Fi service available in many private locations, licensed spectrum bands offer greater data privacy, security, and faster connection speeds.
How does Industry 4.0 relate to 5G?
Cellular technology has come a long way in the past four decades. Each generation has added a layer of sophistication on the other generation, starting with the voice. Over the years, three generations of cellular airwaves enabled users to text, access the Internet, and watch live-streaming video at the same time.
Unlike its predecessors, the latest wireless iteration opens up a new paradigm in cellular connectivity. This is because the real benefits of 5G are largely applicable to industrial enterprises as compared to individual users. Think industrial AI-enabled robots on shop floors and warehouses, autonomous vehicles on the road, and mixed-reality headsets with advanced mobile applications that train workers. Each of these scenarios requires high-speed computing using real-time data at low latency. This is at the core of the Fourth Industrial Revolution where devices talk to each other to perform different tasks.
Big tech firms like Google are seeking direct allocation of spectrum to be used in machine learning applications, connected devices, and general AI advancement.
How does the government plan to set aside spectrum for private network operators?
The Department of Telecommunications (DoT) has said that private companies setting up 5G networks can either obtain a piece of public network from a licensed telecom company, set up a separate campus network from the telecom service provider’s spectrum, or directly spectrum can be obtained. DoT or sub-leasing it from telecom companies.
The notice inviting proposal also said that spectrum auction for private enterprises would be done after a demand study and based on the recommendation of TRAI on the modalities of pricing and block allocation. The telecom regulator expects its recommendations to increase the share of network resources.
Is this a setback for telecom companies?
The Cellular Operators Association of India (COAI) is of the firm view that “there is no justification for allotting spectrum to industry verticals for operating private captive networks”. The union had written to Telecom Minister Ashwini Vaishnav, even before the Union Cabinet approved its 5G auction decision, requesting him to address the crucial issue of private captive networks. It said there would be no business case for a 5G rollout in such a scenario.
explained | Why are telcos upset with TRAI despite the proposal to cut spectrum prices by 40%?
This stems from his concern that 5G technology has more industry use cases than individual consumers. Therefore, telecom companies are concerned that providing 5G spectrum allocation to industries to set up private networks will reduce their own revenue from the next generation of cellular services.