There is an issue of whether enterprises should lease spectrum from telcos or get direct allocations of spectrum from the government. The Digital Communication Commission (DCC) and Trai are in favour enterprise obtaining spectrum directly from the government. Telcos oppose this as it will shrink their revenues by 40 per cent.
In favour of CPNs
TCS is in favour of CPN seeking greater participation to realise the potential of Industry 4.0. There will be greater security and control over data. TCS cites the examples of the US, Britain, Denmark, Finland, France, Germany, Sweden, South Korea, Japan, Taiwan and Australia where mid-band mm wave spectrum has been earmarked exclusively for private networks. Infosys too plans to lease spectrum for deploying CPNs for its clients. Wipro, HCL, Tech Mahindra also seek greater participation of CPNs.
There is convergence of technologies — IoT, edge computing, AI, 5G and hybrid cloud. There is data traffic between machines. There are sensors capturing data at the edge. The decisions are taken in milliseconds. There is no transfer of information to cloud. There is saving of both bandwidth and costs.
Smart factories, smart homes, smart transportation, smart cities, smart energy will proliferate. In the traffic, images dominate. AI at the edge plays a role in filtering out data that is not useful.
Proprietary information should flow on their own CPNs.
Against CPNs
Telcos are heavily indebted. They have muted interest in 5G auctions. If CPNs too get direct spectrum, it will be a bold decision of the government. The enterprises have less experience in setting up networks. If spectrum is given cheap to enterprises, it will open up a Pandora’s box.
Despite the protests, the union cabinet has gone ahead with allowing direct allocation of spectrum to private captive networks in keeping with the global trend. India will now join Germany, UK, France, Italy, US, South Korea, Japan, China and Saudi Arabia — which have assigned spectrum for private usage of 5G.
Private networks can be used in manufacturing, mining, power sector, railways, oil and gas, ports, airports, warehousing, public venues, wind farms among others.
Organisations can choose from several vendors, or else can tie up with IT companies or Big Tech. They will not just be dependent on telcos.