5G spectrum auctions are just a few days away from here. The bidders have already been confirmed, with Adani Group being the surprising entry into the scene. But there is still the issue of the spectrum being administratively provided directly to the tech companies, which could lead to unfair play for the telcos. The Cellular Operators Association of India (COAI) has been quite vocal about the same thing for a long time. COAI is a trade association that represents private telcos.
“We are pleased to see that companies wishing to use 5G spectrum have applied for open bidding on the spectrum through a transparent auction process, thus maintaining a level playing field and allowing all interested parties to bid on the spectrum they need. India’s structured licensing framework has contributed to an orderly growth of India’s digital connectivity landscape; opening up access to spectrum for companies directly disrupts the level playing field. Spectrum should not be provided on an administrative basis as it will not lead to a business case for the rollout of 5G networks in the country,” said Dr SP Kochhar, Director General of COAI.
Telcos will have no incentive to launch 5G if tech companies can gain backdoor access to telecoms sector by getting Spectrum directly from DoT
The telcos are concerned about seeing backdoor entrances from tech companies in the telecom sector by the 5G spectrum of the DoT in an administrative manner. They can offer private 5G services to enterprises and will not even be subject to the same level of regulatory and tax compliance as the private telcos.
“If the independent entities set up private captive networks with direct allocation of 5G spectrum by DoT, it will reduce revenues so much that there will no longer be a viable business case for the TSPs, and there will be no need for the 5G rollout. networks by TSPs. It is important to understand that licensed access service providers are fully capable of providing these services in the most competitive and economical way compared to private companies.”
“Any consideration of administrative allocation of spectrum for such networks fundamentally violates the principles of a level playing field and effectively provides backdoor access to major technology players to provide 5G services and solutions to businesses in India without equivalent compliance with the regulations and payment of fees that TSPs are subject to,” Kochhar added.
