NEW DELHI: The Cellular Operators Association of India (COAI), representing private telecom service providers, has strongly opposed the direct allocation of spectrum to enterprises. It argues that such a move is not viable in India due to the country’s unique telecom ecosystem, potential revenue losses, and national security risks.
COAI — which counts Reliance Jio, Bharti Airtel, and Vodafone Idea among its members — insists that enterprise 5G requirements should be met exclusively through licensed Telecom Service Providers (TSPs), either via spectrum leasing or through network slicing. According to the association, the Indian scenario differs significantly from countries like the US, Finland, Germany, and the UK, where private 5G networks are typically deployed in remote or geographically isolated areas. In contrast, most Indian enterprises are located in well-serviced urban zones already covered by licensed telecom operators.
The association also disputes claims that independently setting up private 5G networks would be more cost-effective for enterprises. It points out that such deployments involve high capital expenditure, not just on network equipment, but also on spectrum management, security systems, ongoing maintenance, and skilled manpower.
“Unlike TSPs, most enterprises do not have the expertise or scale to manage telecom infrastructure efficiently. What appears cheaper on paper could turn out to be more expensive and operationally burdensome in practice,” said S P Kochhar, Director General of COAI.
COAI further warns that radio frequencies (RF) used in private networks cannot be geographically contained. This creates a risk of signal spillover, which could interfere with public mobile networks operating in adjacent bands.
The association also highlights the revenue implications of bypassing spectrum auctions. India’s 2022 spectrum auction alone generated ₹1.5 lakh crore. Allowing enterprises to acquire spectrum outside of this process, COAI argues, would lead to a substantial loss to the national exchequer and create an unfair playing field — enabling private entities to benefit from telecom infrastructure without adhering to the same regulatory and financial responsibilities as licensed operators.
In addition, COAI raises serious national security concerns, warning that private networks managed by unlicensed or foreign entities could pose significant risks.
“Without a clear regulatory framework, there would be no accountability in case of misuse, breach or attack. Such an arrangement would also dilute the State’s ability to ensure lawful interception, user traceability and emergency response coordination,” said Kochhar.