The Ministry of Telecommunications has said that companies wishing to apply for spectrum to set up their own private 5G network must have a minimum capital of Rs 100 crore. In addition, the applicant must be a resident of the geographical area where he wants to set up the private 5G network. The companies will be required to obtain a 10-year renewable license at a non-refundable application fee of Rs 50,000.
However, keep in mind that the process of giving spectrum directly to the companies will not happen right away. The DoT will conduct demand studies and then involve the Telecom Regulatory Authority of India (TRAI) in the direct allocation of the airwaves to the enterprises. We are at least two years away from this happening, so until then the companies can lease the spectrum from the telcos or ask the TSPs (telecom service providers) to set up their private networks.
There are rules for leasing the spectrum that both the telcos and the companies will have to follow. For more information about these rules, click here.
Broadband India Forum Not Happy With Rs 100 Crore Net Worth Criteria
TV Ramachandran, chairman of the Broadband India Forum (BIF), is not happy with the Rs 100 crore net worth criteria that the DoT has implemented for the enterprises to obtain the spectrum. Ramachandran told ET that BIF hopes DoT will reconsider its proposal as only a few companies will be able to meet the criteria of a net worth of Rs 100 crore, and this would hinder the spread of private 5G networks in India in India.
The companies that cannot meet the criteria can either ask the TSPs to set up their captive private 5G networks, or they can lease the spectrum from the TSPs if they desperately need it.
