Communication ministry seeks entry of Big Tech in 5G captive network

NEW DELHI: In a move that will come as a setback to top mobile operators such as Airtel, Reliance Jio and Vodafone Idea, the Communications ministry has sent recommendations to the Union Cabinet, favouring the entry of Big Tech such as Google, Amazon, TCS and Cisco in building captive 5G networks for businesses and enterprises, sources have told TOI.
The Cabinet is expected to take up the matter very soon, and a clearance to the entry of Big Tech into non-public 5G networks will be a dampener for mobile companies ahead of the spectrum auctions as the telcos fear that their business prospects will be hit if new players enter the fray.
“Enterprises setting up private captive networks may obtain the spectrum directly from the DoT and establish their own isolated network,” the recommendations from the communications ministry for the Union Cabinet says, as per the sources. The move is in line with the original recommendations given out by regulator Trai that had first suggested the entry of technology firms into the captive 5G space for businesses, in line with similar practices across many nations.
The note by the communications ministry headed by Ashwini Vaishnaw, reviewed by TOI, highlights a variety of routes in which private captive networks can be set up in areas such as smart factories, hospitals, educational institutes, agricultural players, ports, airports, and hotels. The note says that while private tech companies would be allowed to set up the captive networks, the same would also be open for traditional telecom companies who will continue to have rights of being in the business too.