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Department of Telecom - Guidelines for Captive Non-Public Network License

Varun Sen Bahl

@varunsenbahl1

July 5, 2022

Public Policy

369

On 27^th June 2022, the Department of Telecommunications (DOT) released a set of guidelines on the setting of captive non-public networks (CNPNs) in India.

For context, a captive private network is a local area network where spectrum is obtained by a private entity for their own use and is not available for public use. As per the guidelines, these can play a key role in “automation and industry 4.0 by providing secure, ultra-reliable, low latency and high throughput communication using advanced technologies”.

The guidelines have been issued pursuant to a set of recommendations released by the Telecom Regulatory Authority of India (TRAI)(available here), where the TRAI recommended permitting enterprises to set up independent private 5G networks using spectrum leased from telecom service providers (TSPs) or directly from the DOT.

How can CNPNs be set up?

The guidelines envisage CNPNs being set up in four scenarios:

TSPs with an Access Service License (ASL) may provide private networks as a service to an enterprise by using network resources over its Public Land Mobile Network (PLMN).
TSPs with an ASL may establish isolated CNPNs for enterprises using the international Mobile Telecommunications (IMT) spectrum acquired by them.
Enterprises setting up CNPNs may obtain spectrum on lease from TSPs and establish their own isolated network.
Enterprises setting up CNPNs may also obtain spectrum directly from DOT and establish their own isolated network.

The rest of the guidelines are intended to operationalise the above. They state that:

For scenarios 1 and 2: To enable TSPs to set up CNPNs, corresponding amendments have been made to the Unified Access Service License (UASL) and the Unified License (UL) on 27th June 2022. These amendments are available here and here.
For scenarios 3 and 4: To enable enterprises setting up CNPNs themselves (scenarios 3 and 4), the Govt. shall issue licenses under section 4 of the Indian Telegraph Act of 1885. To be eligible, an applicant must:
- be a registered Indian company and be an occupant of the area or property where the CNPN will be established.
- follow the existing guidelines on the FDI policy as applicable.

Further, to directly seek spectrum from DOT (scenario 4) the applicant must have a net-worth of no less than 100 crore rupees.

CNPN License Conditions

A brief snapshot of the CNPN license conditions for scenarios 3 and 4 include:

Usage conditions: Any CNPN licensee must ensure that the CNPN will be for their own use and be established indoor/within premises. Such a license cannot be used for commercial telecom services. The licensee shall not connect the CNPN to any public network (PSTN, PLMN, GMPCS and the Internet). Further:
- The licensee must ensure there is no harmful interference to authorized users of the radio spectrum.
- Signals must be restricted to indoor areas or to the relevant geographical areas for this purpose.
- EMF exposure norms as applicable must be followed.
- The CNPN license must obtain SACFA clearance and import permission for wireless equipment.
Scope: The license will be valid in all locations where the license is an occupant of the area or property where the CNPN is to be established. Only one license will be required for setting up CNPNs in multiple locations.
Application process: Applications are to be made to the DOT’s portal: www.saralsanchar.gov.in. The application form is annexed to the guidelines. Every CNPN licensee shall have a unique license number assigned to them.
Fees: There are no entry or license fees. Applicants will have to pay a one-time non-refundable application processing fee of 50,000 rupees.
Validity: The license will be valid for 10 years. Renewals shall be processed as per extant policy.
Security conditions: Every CNPN licensee shall follow all relevant conditions on network security and the procurement of telecom equipment as issued by the Govt. from time to time. The DOT will have the right to inspect CNPNs, lawfully intercept, and ascertain its bonafide use.
Spectrum assignment:
- For scenario 3, the process by which CNPN licensees shall obtain spectrum from a TSP having an ASL shall be on mutually agreed terms and conditions and governed by separate guidelines on leasing of spectrum for CNPNs dated 27^th June 2022 (available here).
- For scenario 4, the DOT will undertake demand studies and seek recommendations from the Telecom Regulatory Authority of India (TRAI) on the direct assignment of spectrum to licensees.

***

For any queries or inputs on these guidelines, please write to varun@nasscom.in. Doyita Basu, currently a Public Policy Intern at NASSCOM, contributed to this post.

#DOT #5G #CNPN #privatenetwork #telecom

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Varun Sen Bahl

Manager - Public Policy

Reach out to me for all things about data regulation, cybersecurity policy, and internet governance.