Instead, the communications ministry is more favourable to leasing of network capacities by these firms from telecom service providers, the official said.
While the option of buying 5G spectrum at the auction-determined price has been kept open for private companies, the government’s decision will be a boon for telcos such as Bharti Airtel, Vodafone Idea and Reliance Jio, since the industry earns about 40% of its total revenues from enterprise businesses.
“The best way to go forward in this direction is through leasing; telcos have the capacities, in any case, private enterprises wanting to connect to a network will need to connect with the main (telecom service provider network)," the official said requesrting anonymity.
“Creating a separate category needs a lot of consideration," the official added, indicating that the government is not in favour of forming a distinct category of license holders for captive wireless private networks.
Telecom operators said earlier that private network providers should be treated at par with telcos if they’re given licenses for using 5G spectrum and therefore be subject to the same taxes, levies, security and compliance rules as telcos.
The Telecom Regulatory Authority of India (Trai) had also said, in its response to a reference from the Department of Telecommunications (DoT) that captive wireless private networks can lease spectrum from telcos.
Meanwhile, a decision on reducing the reserve price for 5G airwaves and extending the period of the license to 30 years from the Trai-recommended 20 years, is likely to be taken by the Union cabinet, even as the DoT’s highest decision-making body – the Digital Communications Commission – has accepted most of Trai’s recommendations including those on spectrum prices and keeping duration of the license period to 20 years.
“There is always the option to increase it to 30 years, but let us see what the Cabinet decides... pricing also, we will wait for Cabinet," the official said.
The government plans to hold auctions in either June or July with the plan to start 5G services locally by August, albeit on an indigenous platform being developed by a Tata Consultancy Services-led consortium with C-DoT as technology partner, which is holding commercial discussions with state-run telecom operator Bharat Sanchar Nigam Ltd.
BSNL is holding trials for 4G networks with the TCS-led consortium.
“The 5G core is practically ready and will be launched in a few weeks. This will become the 5G stack. So there will be core, radio equipment and handset on 5G, the full technology stack available. The world will have a true competitor from India," the official said.
He said that the indigenous stack – which is also 4G ready - will be able to provide 5G technology at a fraction of the investments made by global companies in this sector.
