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Private 5G networks to help India achieve Industry 4.0 goals: BIF
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IANS | 09 Jun, 2022
As India takes baby steps towards 5G, leading industry body Broadband
India Forum (BIF) said on Thursday that private 5G networks would be
crucial for the enterprises to augment efficiencies, enhance
productivity and march towards Industry 4.0.
Meant for
non-public use, Private 5G Networks are not about Public Data and Voice
networks working inside private/captive campuses as is being alluded to
and misunderstood in certain quarters.
"India needs higher
efficiencies in verticals like manufacturing, healthcare, education,
agriculture, financial inclusion and many others to accelerate the
process of digital transformation. This can best be achieved only
through the use of Private 5G Networks," said the BIG in a position
paper.
Private 5G Networks are about the deployment of high
speed, enhanced data capacity, and ultra-low latency applications inside
a closed manufacturing unit, hospital, airport, shipping port, etc.
"Since
none of these applications are working in India at present, claims to
be able to deliver these features through public networks are
unsubstantiated," said the paper.
For example, a Maruti or an
Apollo would know its system and requirements far better than anyone
else, and therefore, would be able to customise and design the network
and applications accordingly.
A Public Telecom Network set up by a
telecom licensee would necessarily have to be one which optimises the
various needs of the masses.
"It would not be in a position to
meet specific enterprise higher and specific SLAs (service-level
agreements) that are characteristic of specific industry verticals. For
example, the needs and requirements would be quite different of a
Maruti-Suzuki automotive factory from that of an Apollo Hospital or of
an IIT Delhi campus, and so on," said the industry body.
Most of
the revenues of the telcos are external and that remains completely
untouched and, hence, they remain protected as do the government
revenues.
"The Non-Public Networks or Private Networks constitute
additional revenue streams for the telcos and the government. This
revenue stream has not yet been tapped," said the BIF.
There
would be no revenue loss to the government on account of direct spectrum
allocation for private 5G networks to enterprises, as they shall
purchase the spectrum at a price to be fixed by the government and
allocated administratively.
"Enterprises who will be permitted to
set up Private Networks would have to acquire a Special CPWN License
and would be required to pay License Fee. So, under no count does the
government stand to lose revenues, as is being apprehended in some
quarters," read the position paper.
It is a misconception that Private 5G Networks would lead to revenue losses for the telcos, as expressed by certain entities.
"In
fact, a more efficient captive network through Private 5G would lead to
increased productivity for the enterprise, which would help grow
business activities/external communications, thereby driving better
revenues for the TSPs (technical service providers). New enhanced
revenue streams could flow to the telcos," according to the BIF paper.
It
needs to be clearly understood that Private Networks would not be
addressing the retail market and they would need the dedicated spectrum
within the local campus only and the same spectrum if required, can be
reused elsewhere.
Only a limited amount of spectrum (about 100
MHz, depending on the specific spectrum bands) would be required and is
to be used/deployed within the geographical boundaries of the premises
(with specific lat-longs) and not in the entire LSA/Circle.
The
Telecom Regulatory Authority of India (TRAI), after significant
deliberations, has considered that Captive Wireless Private Networks are
not Public Networks, have no market customers, and are limited to a
specific location.
Thus, TRAI has most appropriately recommended
that the spectrum is to be assigned administratively, in line with
global practices.
As India gears up for the 5G spectrum auction,
the TRAI is aiming to enable the framework for enterprises to build
their own private networks.
Leading industry bodies have hailed
the TRAI recommendations of around 35-40 per cent cut in the reserve
price for 5G spectrum for mobile services, terming it historic and which
can finally put India on the world 5G map.
The telecom regulator
has put forward a mega auction plan valued at over Rs 7.5 trillion at
the base price allocated over 30 years.
The entire gamut of
available spectrum in 600 MHz, 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100
MHz, 2300 MHz, 2500 MHz, 3300-3670 MHz and 24.25-28.5 GHz spectrum
bands has been recommended by the TRAI to be put to auction.
In future auctions, the access spectrum will be assigned for a period of 30 years as against 20 years now.
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