Disappointed on the authorities’s choice on captive personal networks, business physique COAI has demanded a level-playing-field, arguing that resolution suppliers must also pay license price and GST on the charges relevant for telcos on the billed quantity of income, and that such captive networks should stay “truly” personal and remoted, and cling to safety norms.
In a letter to the Telecom Department, COAI argued that since a call to allow the captive networks via direct spectrum project has been taken, the federal government should now limit scope of such personal networks to machine-to-machine communication inside the particular premise and plant automation solely.
Such networks should guarantee they don’t trigger any interference to public networks.
COAI mentioned that from a nationwide safety perspective, these networks ought to adjust to the prescribed subscriber verification norms, in order to make sure satisfactory verification and traceability of each person.
Periodic audit to make sure compliance should be carried out, mentioned COAI, whose members embody Reliance Jio, Bharti Airtel and Vodafone Idea.
The captive networks ought to be assigned spectrum solely in non IMT/5G/Commercial bands, COAI mentioned cautioning that not doing so would lead to scarcity of harmonised spectrum for telcos’ community, inefficient utilisation of the dear spectrum, and loss to the exchequer.
“At present only 330 MHz in mid band and 2.85 GHz in mmWave has been put to auction. If the other bands which are likely to be identified for IMT are not reserved/ assigned to TSPs, it will constrain TSPs (telecom service providers) to properly plan their network to meet the customer demand in mid and long-term,” COAI mentioned in its letter to Telecom Secretary, Okay Rajaraman.
However, TRAI has “ignored the above issues” whereas recommending 3.7-3.8 GHz, 4.8-4.99 GHz and 28.5-29.5 GHz bands for captive personal networks, COAI mentioned.
COAI additional urged that captive personal networks ought to solely be assigned spectrum in non-mobile providers band, and no IMT spectrum band ought to be allotted for such personal networks.
“Further technologies 2G, 3G and 4G should not be permitted. DOT (Department of Telecom) should conduct periodic assessment to ascertain that the allocated spectrum is being fully used,” it mentioned in its submissions.
System integrators and different intermediaries shouldn’t be allotted such spectrum, Cellular Operators’ Association of India (COAI) Director General, SP Kochhar mentioned within the letter dated June 18.
Private networks’ set-up utilizing devoted spectrum should be sure by identical safety circumstances as relevant for telcos, that’s storing name or knowledge data for two years, command logs for 3 years, maintaining data of software program updates, knowledge localisation, distant entry solely from in-country and no distant entry exterior of India, the affiliation wrote.
“Some of the CNPN may be very large, handling a large number of users/employees and machines for which Lawful interception become important. They should also be liable to install LIS/LIM in line with obligations of TSPs,” based on COAI.
These networks should stay as actually personal and remoted, COAI asserted, flagging the probability that enterprises acquiring the spectrum for captive networks could also be tempted to attach a number of workplaces.
“Such interconnection shall not be allowed…Scope of CNPN must be limited to the very intent of provision of CNPN, that is M2M communication inside the premises and plant automation,” COAI mentioned.
Captive networks should be established by the top person and never by third events, it emphasised.
“Therefore, like the unified licensee, CNPN owners must own all equipment installed for the purpose of CNPN and not obtain on lease/rental from the third parties/intermediaries. Any third party who intends to provide/install and operate the network of
CNPN must obtain the spectrum through the same process as TSPs,” COAI mentioned.
It has additionally emphasised that use circumstances meant for lots can’t be a part of captive networks, and captive networks should not be related to any international location/knowledge centre for the aim of redundancy/catastrophe restoration/distant administration.
COAI additionally mentioned that since “such solutions can be provided by licensed TSPs having spectrum acquired through auction in a transparent manner, the solution provider should pay license fee and GST at the rates applicable for TSPs on the billed amount of revenue to ensure level playing field”.
“In case of a network installed for internal use, equivalent commercial value should be used. In both cases, it should be ensured that there is no under invoicing and a case of diversion of funds does not arise. Alternatively, revenues earned by
TSPs from provision of CPN should be exempted from payment of license fee and GST,” COAI mentioned.
It additionally made a pitch for ‘same service same rule’, saying this can guarantee investor’s confidence and steady investments within the sector for roll-out of future telecommunication networks.
“Rules applicable for CNPN should be made applicable for CPN/ PN provided by licensed TSPs. Otherwise, no investor will invest in a taxed portfolio when the same investment can be made without any tax burden through the CNPN route,” COAI mentioned.
TRAI ought to do preliminary and annual evaluation and examine, and such networks should present the information sought by the regulator once in a while.
“CNPN should comply with the provisions of National Directive on Security as applicable to TSPs including sourcing of equipment from Trusted Source. Further, applicable Guidelines/security instructions/ Acts/ Regulations should be made applicable and enforceable for CNPN networks in India,” COAI mentioned.
These steps ought to be taken to make sure orderly progress of the sector and to take care of investor confidence.
“Accordingly, any guidelines for setting up Captive Non-Public Network (CNPN) by obtaining spectrum directly from DoT should be issued only after a demand study by DoT and subsequent recommendations of TRAI,” COAI mentioned.
Source: www.financialexpress.com”