big tech: 5G captive networks: Telcos threaten boycott over nod to Big Tech – Times of India
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NEW DELHI: Even before the bids are called, 5G auctions are fast turning out to be a turf battle between the well-heeled telecom operators such as Reliance Jio, Airtel and Vodafone Idea and the new-age Big Tech such as Google, Amazon, TCS and Cisco as the two sides fight over the issue of deploying high-speed private networks for enterprises.
The telecom companies, who traditionally buy spectrum in auctions and thereafter roll out the networks, are protesting the decision of regulator Trai to consider giving space to the new-age companies in the deployment of captive business networks such as those that will be used by smart factories, hospitals, educational institutes, agricultural players, ports, airports, and hotels.
While a final decision on the matter will be taken up by the Union Cabinet that will consider Trai’s recommendations which have been forwarded by the inter-ministerial Digital Communications Commission, the telcos are saying that a direct entry of non-telcos into the business would be a deal-breaker, and thus they may not go ahead with 5G bids and the resultant network investments.
“If this critical issue is not immediately addressed, there really will be no business case for roll out of 5G networks,” COAI – the industry lobby group for the telecom industry — says.
COAI’s DG SP Kochhar dashed off a letter to telecom minister Ashwini Vaishnaw, saying that entry of new players will diminish their returns and make it a non-viable proposition.
“Giving away dedicated spectrum for private captive networks will render the rollout of 5G services by the telecom companies needless because of lack of business case… This will diminish the revenue so much that there will be no viable business case left… and there will not remain any need for 5G networks rollout,” Kochhar said.
However, the COAI’s views are strongly countered by Broadband India Forum (BIF), a ‘think-tank’ that has members such as Google, Amazon, Cisco, Meta, OneWeb, TCS, Star, Microsoft, Nokia, and many IITs and start-ups.
TV Ramachandran, a veteran of the telecom industry who is also the president of BIF, says that it will be unfair for innovation and industrial and digital efficiencies if new players are prohibited.
“How can they ask us to be stopped. Let it be an open field, and let the new players compete for business. This happens in every other developed economy such as France, or Germany. The mobile companies are blackmailing and are giving irresponsible statements. It is very disturbing.”
Ramachandran, who incidentally had spearheaded the COAI as its DG for a long twelve years between 1997 and 2009, says that the captive networks are only meant for deployment at the campuses of enterprises, and do not take any consumer business of telcos. “These are not competing with them, and will be deployed only within the confines of a small campus or within an industrial establishment. So, what is the need for objections.”
Regarding the complaint of loss of potential revenues by telcos, he said that the companies are free to increase tariffs to make their businesses viable. “Nobody has stopped them from earning more. If they get low realisations, it is their fault. They have to sort it out.”
The telecom companies, who traditionally buy spectrum in auctions and thereafter roll out the networks, are protesting the decision of regulator Trai to consider giving space to the new-age companies in the deployment of captive business networks such as those that will be used by smart factories, hospitals, educational institutes, agricultural players, ports, airports, and hotels.
While a final decision on the matter will be taken up by the Union Cabinet that will consider Trai’s recommendations which have been forwarded by the inter-ministerial Digital Communications Commission, the telcos are saying that a direct entry of non-telcos into the business would be a deal-breaker, and thus they may not go ahead with 5G bids and the resultant network investments.
“If this critical issue is not immediately addressed, there really will be no business case for roll out of 5G networks,” COAI – the industry lobby group for the telecom industry — says.
COAI’s DG SP Kochhar dashed off a letter to telecom minister Ashwini Vaishnaw, saying that entry of new players will diminish their returns and make it a non-viable proposition.
“Giving away dedicated spectrum for private captive networks will render the rollout of 5G services by the telecom companies needless because of lack of business case… This will diminish the revenue so much that there will be no viable business case left… and there will not remain any need for 5G networks rollout,” Kochhar said.
However, the COAI’s views are strongly countered by Broadband India Forum (BIF), a ‘think-tank’ that has members such as Google, Amazon, Cisco, Meta, OneWeb, TCS, Star, Microsoft, Nokia, and many IITs and start-ups.
TV Ramachandran, a veteran of the telecom industry who is also the president of BIF, says that it will be unfair for innovation and industrial and digital efficiencies if new players are prohibited.
“How can they ask us to be stopped. Let it be an open field, and let the new players compete for business. This happens in every other developed economy such as France, or Germany. The mobile companies are blackmailing and are giving irresponsible statements. It is very disturbing.”
Ramachandran, who incidentally had spearheaded the COAI as its DG for a long twelve years between 1997 and 2009, says that the captive networks are only meant for deployment at the campuses of enterprises, and do not take any consumer business of telcos. “These are not competing with them, and will be deployed only within the confines of a small campus or within an industrial establishment. So, what is the need for objections.”
Regarding the complaint of loss of potential revenues by telcos, he said that the companies are free to increase tariffs to make their businesses viable. “Nobody has stopped them from earning more. If they get low realisations, it is their fault. They have to sort it out.”
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