Page 113 - SAMENA Trends - May-June 2022

REGULATORY & POLICY UPDATES SAMENA TRENDS

DoT Sets Out Guidelines for Controversial Private Networks

The Department of Telecommunications (DoT) has published nies who can easily meet the INR1 billion (USD12.8 million) net-
guidelines for the licensing and operation of private networks, re- worth criteria, which is extremely unfair as it expects telcos, on the
ferred to by the ministry as Captive Non-Public Networks (CNPNs), contrary, to buy these coveted airwaves by splurging billions in the
which India’s cellcos have argued risk undermining the business upcoming auction.’ The DoT’s new guidelines permit enterprises to
model for 5G services by eliminating one of the most potential- establish CNPNs in four ways: telecom service providers (TSPs)
ly lucrative areas for revenue generation. The DoT claims that al- may provide CNPNs as a service to enterprises using network re-
lowing companies to establish their own CNPNs will support the sources over public networks (such as through network slicing);
development of new use cases for 5G in industries such as manu- TSPs may establish CNPNs for enterprises using spectrum that
facturing, construction, healthcare and transportation. The nation’s they have acquired; enterprises may lease spectrum from TSPs to
service providers have argued against the move, however, as the establish their own CNPNs; or enterprises may obtain spectrum
provision of industrial 5G services represents a substantial source directly from the DoT to establish their own CNPNs. The DoT has
of potential revenue for cellcos, without which they might not be published amendments to the Unified License (UL) and Unified Ac-
able to invest as heavily in the acquisition of necessary spectrum cess Service License (UASL) that cover the provision of CNPNs
resources or the construction of widespread networks for use by and the leasing of spectrum to enterprises. For enterprises to es-
the consumer market. Of particular concern to the operators is the tablish their own CNPNs, meanwhile, the DoT’s guidelines specify
fact that enterprises have been given the opportunity to receive that the company must apply for a CNPN license and have a net
spectrum directly from the DoT, without having to spend vast sums worth of at least INR1 billion. The ten-year CNPN license is valid
to purchase the frequency rights through competitive auctions. for a specific geographic location and may not be used for the pro-
The Economic Times quotes an unnamed senior official at one of vision of a commercial telecommunication service, nor may it be
the nation’s cellcos as saying: ‘the government has paved the way connected to public networks although the licensee may connect
for administrative allocation of 5G spectrum to large tech compa- CNPNs at different locations through leased lines obtained from
TSPs. Companies will not be required to pay an entry fee or license
fee for the CNPN license but will be required to pay an application
fee of INR50,000. Regarding the assignment of spectrum to CNPN
licensees, the rules state that the DoT will undertake demand stud-
ies and then see recommendations from the Telecom Regulatory
Authority of India (TRAI) for such allocations. Licensees will be
required to obtain clearance from the Standing Advisory Com-
mittee on Frequency Allocation (SACFA) and will be responsible
for ensuring that signals are restricted to indoor areas or within
the specified geographical area and the network does not cause
harmful interference to other spectrum users. The DoT’s decision
to move forward with the licensing for CNPNs is expected to neg-
atively impact bidding in the upcoming 5G spectrum auction, set
to take place late next month. As previously reported by Comm-
sUpdate, the tender will feature spectrum in the 600MHz, 700MHz,
800MHz, 900MHz, 1800MHz, 2100MHz, 2300MHz, 3300MHz and
26GHz bands.

Zambian Government Reportedly Puts Telco Up for Sale

A senior official at state run telecoms firm Zamtel has revealed government taking office. The sale of the telco is said to have
that the government has put the company up for sale. According been opted for following the revelation by Science and Technology
to local press outlet the Lusaka Times, Zamtel Acting CEO Joshua Minister Felix Mutati earlier this week that Zamtel is currently loss-
Malupenga informed a special virtual staff meeting last week that making. Mutati recently disclosed that around 90% of the fixed line
the government has already found an equity partner to run the incumbent’s revenue is being utilized for administrative expenses,
company, although the executive was said to have stopped short while it was reported that Zamtel requires around USD265 million
of disclosing the identity of this company, only confirming that it to survive. On top of this, the report also claims Zamtel currently
was a foreign entity. According to the unnamed source cited by has debts of around ZMW3 billion (USD175 million), while it still
the report, meanwhile, the state’s aim is for the new equity partner owes around USD500 million to LAP GreenN, the latter being
to come in by August 2022, within the first year of the current related to the reversed sale of a stake in the telco back in 2010.

113 MAY-JUNE 2022