TRAI proposal for enterprise 5G

India’s telecom regulator has proposed that enterprises be allowed to obtain spectrum directly for private 5G deployments, according to Indian press reports.

The move would let companies set up their own non-public 5G systems instead of depending fully on telecom operators for such networks.

The proposal has been welcomed by companies including Infosys, Tata Communications and Larsen & Toubro, which have been seeking the ability to run dedicated 5G networks for their own use cases.

Analysts cited in reports said that, if the government accepts the recommendation, enterprises may be able to build these networks at lower cost than leasing spectrum or buying comparable services from telecom providers.

TRAI recently recommended a separate authorization route tied to Section 3 of the Telecommunications Act, 2023.

Under this approach, captive non-public network providers would be able to build, operate and expand private networks for enterprises.

Section 3 allows administrative spectrum assignment for areas such as defense, disaster management, broadcasting, in-flight and maritime connectivity, as well as other critical industries including mining and oil exploration.

Limited traction so far

The recommendation comes as private 5G in India has advanced slowly.

If approved, the proposal could help speed up enterprise 5G deployment in a market where activity has remained limited.

Data cited from the Global Mobile Suppliers Association shows India currently has 10 private 5G networks.

That compares with more than 170 in the United States and more than 50 across China and Germany combined.

The gap has reinforced arguments from supporters who say easier access to spectrum could help broaden adoption in India.

There was already a 2022 Cabinet decision that approved direct spectrum assignment to enterprises, but progress since then has been limited.

The Department of Telecommunications had also conducted an exercise to assess interest from potential users.

Companies named in that process included Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications and Tata Power.

Even so, no major follow-through has been reported.

Rakesh Kumar Bhatnagar, director-general of the Voice of Indian Communication Technology Enterprises, said the regulator’s recommendations could be highly significant if adopted by the government.

He said there are more than 10 domestic design-led players that could take on these projects, and that demand is above 10,000 projects.

Operators resist administrative allocation

The proposal is opposed by major Indian telecom operators including Bharti Airtel, Reliance Jio and Vodafone Idea.

Their objection is to spectrum being assigned administratively rather than sold through auctions.

These operators argue that such a system would be unfair because telecom companies must spend heavily to secure spectrum through competitive bidding.

Enterprise services are also an important business line for telecom providers, accounting for about 20% of their total revenue, according to the report.

Allowing enterprises to establish their own private networks could therefore weaken a revenue stream that operators view as strategically important.

Private 5G has also been treated by telecom providers as a key monetization opportunity.

That helps explain the intensity of the disagreement over who should control access to spectrum for enterprise networks.

Implementation remains the key hurdle

Despite TRAI’s recommendation, legal experts noted that the DoT has not formally put Sections 3 and 4 of the Telecom Act into effect.

Those sections deal with authorization and spectrum allocation, making implementation a necessary next step before the proposed framework can move ahead.

That leaves the issue at an important but still incomplete stage.

TRAI has outlined a path for direct enterprise access to private 5G spectrum, companies interested in dedicated networks have voiced support, and telecom operators continue to push back.

The next move now depends on whether the government and the DoT turn the recommendation into an operational policy.