5G Spectrum Dilemma: Enterprises or Telecom Operators in India?

Contradicting TRAI's recommendations, reports suggest the Indian government may not directly allocate 5G spectrum to enterprises for private networks, possibly impacting the domestic telecom gear industry and the cost of 5G private network spectrum.
5G Spectrum Dilemma Enterprises or Telecom Operators in India

In contradiction to the Telecom Regulatory Authority of India’s (TRAI) recommendations last year, recent reports indicate that the Indian government is not likely to allocate 5G spectrum directly to enterprises for building private networks.


TRAI previously advocated for enterprises to lease spectrum from both telecom companies and the Department of Telecommunications (DoT) to establish 5G private networks. They suggested reserving a 40MHz spectrum block in the 3,700-3,800MHz band and 400MHz in the 2,850MHz-2,950MHz millimeter wave band for private networks. However, these recommendations were declined by the DoT, which consulted attorney general R Venkatramani and decided to opt for auctions for fair spectrum distribution. It remains uncertain if any 5G spectrum will be auctioned for private networks. Reports hint that leasing from telecom operators might be the only option for enterprises to build private networks.

Several enterprises, including Infosys, Capgemini, Tata Communications, Tejas Networks (a Tata Group part), Tata Power, Larsen and Toubro, and GMR, expressed interest in directly procuring 5G spectrum from authorities to set up private networks in a demand study conducted by the DoT.

Should this decision materialize, it will favor telecom companies, which have been advocating for it over the past years. They argue that they won’t have any incentives to build 5G networks if enterprises can procure 5G spectrum directly from DoT.

Conversely, businesses argue that directly allocating spectrum to enterprises would foster the local telecom gear industry. They express concerns that telecom companies tend to collaborate with global telecom equipment manufacturers, sidelining the domestic industry.

Voice of Indian Communication Technology Enterprise (VoICE) suggests that reserving small portions of bands for deploying private 5G networks using domestic technologies would provide an exclusive space for domestic players to grow. VoICE was created to promote self-reliance in the telecom industry and counts multiple domestic companies among its members.

Furthermore, enterprises argue that direct allocation of the spectrum is the best way forward to avoid potential cartel-like behavior where telecom operators could demand higher rates for 5G private network spectrum.

Despite the uncertainty around 5G private network spectrum distribution, several companies have started deploying them. For instance, Apollo Hospitals, in partnership with Airtel, set up a private network. Similarly, Airtel and Tech Mahindra deployed private 5G networks at Mahindra & Mahindra’s auto manufacturing plant in Maharashtra. Vodafone Idea is also in partnership with L&T Smart World and Communication (SWC) to establish a 5G private network.


Recent Content

ย Virgin Media O2 and Daisy Group have joined forces to form a ยฃ1.4B B2B telecom and IT services powerhouse, targeting UK enterprises with an integrated offering that includes private 5G, cloud, AI, and cybersecurity solutions. With Virgin Media O2 holding a 70% stake and Daisy 30%, the new entity aims to accelerate enterprise digital transformation, drive operational synergies, and compete against both traditional telcos and cloud-first players in a fast-evolving market.
Indoor 5G enables high-speed, low-latency connectivity in enclosed environments like offices, hospitals, and airports, supporting mission-critical applications and smart building operations. The market is driven by technological advancements in small cells, distributed antenna systems, and a mix of mmWave and Sub-6 GHz bands. Asia-Pacific leads in adoption due to smart city initiatives and government support. Picocells and antennas are key components, with growing demand in emerging economies fueled by subsidies and infrastructure upgrades. Recent developments include partnerships and acquisitions aimed at strengthening indoor 5G capabilities.
Twelve major European telecom providers, including Vodafone and Deutsche Telekom, have jointly urged the EU to allocate the full upper 6GHz band (6.425โ€“7.125 GHz) for mobile use, citing the spectrumโ€™s critical role in future 6G deployment. With the U.S. and China already advancing in this area, operators warn that delays could jeopardize Europeโ€™s digital leadership and hinder next-generation connectivity infrastructure.
The telecom industry in 2025 is undergoing a major transformation, driven by artificial intelligence (AI), cloud growth, next-gen cellular networks, and national data sovereignty. AI is reshaping cellular infrastructure, enhancing spectrum efficiency through innovations like ELAA (Extremely Large Aperture Arrays), and enabling smarter, adaptive networks.
Vodafone is expanding its role in the UK smart metering upgrade by providing fixed-line connectivity between energy suppliers and the Data Service Platform (DSP). This move complements its existing mobile network role and positions Vodafone as a critical telecom partner in the UK’s digital energy transition, helping to advance national net-zero and smart grid goals.
Whitepaper
Explore how Generative AI is transforming telecom infrastructure by solving critical industry challenges like massive data management, network optimization, and personalized customer experiences. This whitepaper offers in-depth insights into AI and Gen AI's role in boosting operational efficiency while ensuring security and regulatory compliance. Telecom operators can harness these AI-driven...
Supermicro and Nvidia Logo
Whitepaper
The whitepaper, "How Is Generative AI Optimizing Operational Efficiency and Assurance," provides an in-depth exploration of how Generative AI is transforming the telecom industry. It highlights how AI-driven solutions enhance customer support, optimize network performance, and drive personalized marketing strategies. Additionally, the whitepaper addresses the challenges of integrating AI into...
RADCOM Logo
Article & Insights
Non-terrestrial networks (NTNs) have evolved from experimental satellite systems to integral components of global connectivity. The transition from geostationary satellites to low Earth orbit constellations has significantly enhanced mobile broadband services. With the adoption of 3GPP standards, NTNs now seamlessly integrate with terrestrial networks, providing expanded coverage and new opportunities,...

Download Magazine

With Subscription

Subscribe To Our Newsletter

Scroll to Top