Network services are provided by telecom operators. They have invested in networks and continue to pay high levies and taxes. They thus provide services to both individuals and enterprises. TRAI has recomanded that non-telecom enterprises could be given 5G spectrum for building private networks. Such a network could be rolled out using a slice of telecom network. Alternatively, an enterprise may request a telecom to establish an independent isolated private network on its premises. There is another option too — the enterprise can obtain spectrum on lease or can obtain it directly from the government, and can establish its own captive network.

Captive networks of these enterprises are used for processes and applications such as robotics, automation etc. Such services when obtained through service level agreements (SLAs) with public networks can cause many problems.

The Broadband India Forum (BFA) feels that private networks would make enterprises efficient and productive. In many countries such private networks have been rolled out. Even telecon operators can lease out part of the spectrum to private enterprises at an affordable cost.

Private networks would not affect the revenues of telecom operators. Their chunk of revenues come from external network services — voice and data services. Captive consumption has a minor share currently. Telecom operators oppose the move, as they feel enterprise services contribute 30-40 per cent to the overall revenues. It disincentivises the telecoms to invest.

The concept of private networks for 5G will enable corporates to set up WiFi and data network.