Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) did not want the government to allow the companies to access the spectrum directly to set up captive private 5G networks. The government did not pay much attention to the wishes of the telecommunications services and allowed the businesses to buy the spectrum directly from the Department of Telecommunications (DoT). Telcos are also allowed to lease the spectrum to the businesses to have the latter set up their own private 5G network. But there are rules about how this can happen.
Jio, Airtel and Vi must provide these details to DoT after entering into a lease agreement
After entering into a spectrum lease agreement, the telecommunications service providers must provide DoT with all the details of the spectrum bands, the quantum spectrum in each band, the period for which the spectrum is leased, the geographical area of the lease and the geo-coordinates of the spectrum. logical perimeter of the defined premises and the use of spectrum. All these details must be submitted to the DoT within 15 days of entering into a lease agreement, an ET Telecom report said.
Businesses that hire spectrum from the Telecommunications Service Providers (TSPs) will also need to obtain online clearance and import certification from the SACFA (Standing Advisory Committee on Frequency Allocation).
DoT will treat the revenue earned by leasing the spectrum as part of the telcos’ gross revenue. This means that they will also be liable to pay fees on that income.
The telco and the companies will have to ensure that the leasing of the spectrum does not result in any form of interference in the public networks. The TSPs can also offer businesses directly to set up their private 5G networks through network cutting, which is now a proven use case of 5G networks worldwide. Businesses need the 5G spectrum for setting up private networks to automate processes and to scale the business digitally.
