Nokia expects the first 5G private networks in India to be deployed in the next couple of quarters
Finnish vendor Nokia said it expected investments in 5G private networks in India to reach around $240-250 million by 2027, local press reported Nokia India’s chief marketing officer, Amit Marwah, as saying.
“We have had a leadership position in private networks across the world and we have more than 500 deployments globally. This business is growing very fast and we see the same kind of trend in India too,” Marwah said.
The executive noted that the first private networks in India are expected to be deployed in the next couple of quarters, mostly in the segments of transportation, manufacturing, healthcare and utilities.
He added that Nokia is looking at opportunities in the 5G private networks space on its own as well as through partnerships with telecom operators such as Bharti Airtel and Reliance Jio, which already own 5G frequencies.
India’s Department of Telecommunications (DoT) has initiated a process to identify 5G spectrum bands to be allocated to companies for the deployment of private networks.
Once the DoT identifies the most suitable frequencies for private networks, it will ask the Telecom Regulatory Authority of India (Trai) to give pricing for the allocation of those bands.
According to the initial guidelines on private networks released by DoT, companies seeking to deploy their own private networks can lease spectrum from telecom operators or get it directly from DoT. Enterprises can also ask telecom operators to roll out their private networks.
The Indian government has not given any deadline for direct spectrum allocation for 5G private networks. According to industry sources, the overall process could take one to two years.
Over 20 Indian companies have applied to secure 5G spectrum to set private networks in the country, according to recent press reports. Some of the interested firms include Infosys, Capgemini, GMR, Larsen & Toubro, Tata Communications, Tata Power and Tejas Networks.
The companies’ applications were submitted in response to a request from the Department of Telecommunications (DoT) meant to help figure out the level of market demand for spectrum to set up private networks. After assessing the demand, the Indian government will decide whether or not spectrum for such private networks should be assigned, and at what price.
The potential direct allocation of spectrum to enterprises for the deployment of private networks has been a source of tension between technology firms and telecom operators.
The Cellular Operators Association of India (COAI) has told the Indian government that local carriers will not have incentives to deploy 5G networks if authorities allow private companies to run their own private 5G networks.
The COAI, which has local operators Bharti Airtel, Reliance Jio and Vodafone Idea as some of its key members, had previously sent a letter to India’s Communications Minister Ashwini Vaishnaw stating that there is “no business case for the roll out of 5G networks” if the government finally approved the possibility for local enterprises to deploy and operate their own 5G networks.
Meanwhile, the Broadband Indian Forum, an independent think-tank and policy forum for digital communications in the country, has stated that the decision to allow tech firms to set up private networks will lead to better efficiencies and productivity and will also propel indigenous manufacturing. The entity highlighted that private 5G networks would be crucial for the enterprises to augment efficiencies and enhance productivity.
