5G regulation and law in India

India’s 5G market is booming, with projections of 270 million subscribers in 2024 and a staggering 970 million by 2030. This growth has fueled investment from telecom giants like Reliance Jio Infocomm Limited (Jio) and Airtel, while 4G subscriptions are on the decline. Data consumption is also surging, with Indians averaging 32GB per month in 2024, rising to 66GB by 2030, exceeding global averages. 1

India completed its first 5G spectrum auction in July 2022, and the second in June 2024. The government auctioned more than 10.5 GHz of capacity in eight frequency bands for the provision of a range of services, including 5G. The bands being offered include 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz and 26 GHz. 2

With regard to 5G networks using SA architecture,  Jio is the only service provider offering SA 5G in India. This is becauseit is the only service provider with a sub-GHz 5G spectrum and has rapidly expanded its 5G network using SA architecture. 3  Other service providers, such as Bharti Airtel Limited and Vodafone Idea Limited established 5G networks using non-SA architecture. However, Bharti Airtel Limited plans to switch to SA 5G networks over the next few years. 4

At present, India’s public sector undertaking (government run service provider), Bharat Sanchar Nigam Limited (“BSNL”) does not offer 4G and 5G services. However, India’s Telecom Minister Jyotiraditya Scindia has announced that BSNL would launch its 4G services across one lakh base stations by May 2025, followed by 5G services in June 2025. 5

The Government of India has also undertaken key initiatives to enable widespread 5G deployment, such as developing an indigenous telecom stack, funding of 5G laboratories and test beds, introduction of schemes such as Digital Communications Innovation Square and Telecom Technology Development Fund. 6

The new Telecommunications Act, 2023 7  (Telecom Act) aims to democratise the allocation of satellite spectrum. The Act provides for the administrative allocation of satellite spectrum instead of the traditional method of allocation via auction. This ensures that there is greater participation throughout the industry and the spectrum is not auctioned and held by a select few companies. At present, service providers in India do not offer 5G services over satellite spectrum. Notably, the 3^rd Generation Partnership Project (3GPP) is working with the satellite and telecom sectors on 5G non-terrestrial networks, and the Communications ministry has stressed on the importance of integrating the 5G technology with satcom services to complement the terrestrial networks and connect both the sky and the ground 8 .

Satellite communication will play a significant role in 5G and beyond as a complementary solution for ubiquitous coverage, emergency/disaster recovery and remote rural-area coverage. Satellite Broadband is rightly poised for a mainstream play in delivering 5G to unserved and underserved areas. 9   

Additionally, the Department of Telecommunications (DoT), has issued guidelines to establish and operate Spectrum Regulatory Sandbox/ Wireless Test Zones (WiTe Zones) 10 . These guidelines were issued keeping in mind the requirements of emerging new radiocommunications technologies. The guidelines are intended to promote research & development activities, and outdoor testing/experimentation in the field of wireless radiocommunications. It allows industrial companies to access spectrum for research & development. 

Pursuant to the Notice Inviting Applications (NIA) issued by the DoT on March 8, 2024 11 , spectrum in the following frequency bands was auctioned - 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz Bands.

 The participants were required to fulfil the following broad criteria as per the NIA 12 : 

• Any telecom licensee holding a Unified Access Service License (UASL) or Unified Licence (UL) with Access Services (AS) authorisation for the service area;
• Any licensee that fulfilled the eligibility criteria for obtaining a UL with authorisation for AS, and gave an undertaking to obtain a UL with authorisation for AS; and
• Prospective entrants were required to provide an undertaking to obtain a UL with authorisation for AS, as per the relevant guidelines issued by the DoT and license conditions. An undertaking stating compliance with the guidelines on Foreign Direct Investment is also required, and the entity should have the financial capacity to bid for spectrum in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz, 2500 MHz, 3300 MHz, and 26 GHz bands, subject to other provisions of the NIA applicable to prospective entrants.

It may also be noted that the NIA also specified certain associated eligibility conditions such as net-worth requirements and a lock-in period on bidding company shareholder equity.

The spectrum bands granted at auction will be valid for a period of 20 (twenty) years from the effective date, which is the date of frequency assignment as mentioned in the Frequency Assignment Letter issued to the successful bidder.

The NIA specifies certain roll-out obligations for licensees to whom spectrum is assigned, such as the following:

• The Successful Bidder shall make its own arrangements for Right of Way (RoW) and other necessary permissions/clearances required as per relevant laws/regulations/ directions of the respective agencies;
• Non-availability of the RoW or delay in securing permission/clearance from any agency shall not be construed or taken as a reason for non-fulfilment, or delay in compliance with roll-out obligations and shall not be taken a valid reason for not carrying out any obligations imposed by the terms of this NIA;
• The network must be rolled out not later than such specified time period(s); and
• The obligations will have to be met through the set-up of owned infrastructure with or without sharing of permissible active and passive infrastructure.

Bidders were given the right to use spectrum at spectrum frequencies in the 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz 2500 MHz, 3300 MHz and 26 GHz bands. 

The NIA provides the reserve price, which is the minimum bid price per block in each Licensed Service Area as determined and notified by the Central Government. It is notified for each band auctioned for the different service areas.

The latest 5G auction, which took place on June 25, 2024, and June 26, 2024, was successful, and INR 1.226bn (USD14.447m) was received through auction of a total quantum of 141.4 MHz spectrum. The unsold spectrum will be put to auction in the next bid 13 .

Some of the challenges 14  faced in the implementation of 5G projects are as follows:

Enabling critical infrastructures: 5G needs to be augmented to enable infrastructure and it will require a change to the core architecture of the communication system as it cannot carry data over longer distances. The Telecommunications RoW Rules, 2024 15 , aim to assist the development of telecom infrastructure and are a step in the right direction.

Financial liability on consumers: It is very likely that 5G will not be as affordable as 4G technology. Also, many existing mobile devices don’t support the new technology, hence many users will need to change their devices. These requirements will result in a financial burden on some users and thus will contribute to challenges to roll-out.

Challenge to cybersecurity: Implementation of 5G may lead to additional threats to telecom cybersecurity.  16 However, the DoT made the Telecommunications (Telecom Cyber Security Rules) 17  public on November 21, 2024. These rules apply to all telecommunication entities including those establishing and operating 5G networks and aim to enhance the security of telecommunication equipment and networks. There are no decisions in the public domain regarding non-compliance with 5G obligations. 

Auctions are periodically held for the allocation of spectrum. The DoT will reportedly seek recommendations from the Telecom Regulatory Authority of India (TRAI) to conduct the next 5G spectrum auction. TRAI provides recommendations on issues such as spectrum pricing, quantum of spectrum to be auctioned, and the introduction of new spectrum bands. 

At present, there are no 5G-specific rules in place. However, under the new Telecom Act, the extant practice of obtaining licenses from the DoT has been replaced with the granting of authorisations. This is applicable to services provided over 5G networks/ technology, as well. Further to this, TRAI issued the “Recommendations on the Framework for Service Authorisations to be Granted Under the Telecommunications Act, 2023” 18 , which suggested a streamlined structure and the associated terms and conditions for the new service authorisations. As TRAI recommendations  are not legally binding, the regulator may or may not issue regulations on the subject. 

There are no 5G-network focused regulations. TRAI issued recommendations dated April 24, 2024, on “Telecommunication infrastructure sharing, spectrum sharing and spectrum leasing” 19 . These recommendations suggest the sharing of active and passive infrastructure between licensed telecom service providers. As the recommendations of TRAI are not legally binding, the regulator may or may not issue regulations on the subject. 

At present, there are no specific rules on granting competitors access to new 5G networks and those networks are is accessible to the public and enterprises. In India, the rules for obtaining licenses for providing services do not differentiate between services offered on 5G and other technology. Under the new Telecom Act, the extant practice of obtaining licenses from the DoT has been replaced with the granting of authorisations. This is applicable to services provided over 5G networks/ technology, as well. 

The rules expected to be enforced under the Telecom Act will govern the terms and conditions for obtaining service authorisations and these will be applicable for providing 5G technology based services, as well. 

The National Centre for Communication Security (NCCS) through notification dated July 19, 2024 announced the commencement of Mandatory Security Certification of the Sessions Management Function of 5G with effect from January 1, 2025.

With regard to additional telecommunication network cybersecurity, the Department of Telecommunications notified the Telecommunications (Telecom Cyber Security Rules) 20  on November 21, 2024 with the aim of enhancing the security of telecommunication equipment and networks. These rules will be applicable to all telecommunication entities including those establishing and operating 5G networks.

With regard to the use of Chinese technology, the government may approve joint ventures between Chinese and Indian companies, subject to specific conditions such as the major shareholding in the joint venture must belong to the Indian entity. However, it should be noted that Chinese firms are reluctant to share technology without clarity on their equity participation.  21

While there are no specific projects in place, the Prime Minister of India on March 23, 2023 unveiled India’s 6G Vision, or Bharat 6G Vision manifesto, which aims to position India as a leading contributor to the design, development, and implementation of 6G technology by the year 2030. 22  BHARAT 6G 2024