Bharti Airtel and Tech Mahindra claim India’s first 5G-enabled auto manufacturing unit. What does it mean?

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What is a private 5G network?

A private 5G network, also called a captive non-public network (CNPN) essentially is a network that is set up solely for a firm’s own use. Unlike a public network, it is closed to external communication. The network relies on high-frequency, low-wavelength airwaves and is therefore ideal for institutions like factories, manufacturing plants, hospitals, universities etc.

According to industry analysts, private 5G networks are expected to bring in a large chunk of the revenue for companies deploying them, given that consumer adoption of 5G could take time and may not draw in as much revenue given the typically low tariff rates in India.

What is the significance of the move?

The partnership could mean that, for now, Airtel has stolen a march over the Adani Group which had bought spectrum during the auction earlier this year specifically to deploy private 5G networks. In the auction, the Adani Group, through its subsidiary Adani Data Network had acquired 400 MHz of spectrum in the 26 GHz band for a total of Rs 212 crore.

The conglomerate has maintained that it was not bidding for spectrum for the consumer space, but to develop its own private network to deploy at its business verticals including airport, ports and logistics, power generation, transmission, distribution, and various manufacturing operations. At the same time, the group has not ruled out building private 5G networks for other enterprises but is yet to make an announcement to that end.

Airtel, which has opted for a non-standalone architecture for its 5G services, was also ready with a standalone setup for private captive network use cases, sources had earlier told The Indian Express. In the non-standalone architecture, operators can maximise the utilisation of their existing network infrastructure with relatively lower investment.

The government, in August, had invited stakeholders to participate in a demand study for the direct assignment of spectrum for setting up private 5G networks. Analysts had predicted that most enterprises might wait for direct allotment of spectrum for setting up such networks, however, Airtel and Tech Mahindra’s partnership shows the opportunity for collaboration between telcos and private enterprises.

How will the private 5G network work at the Chakan plant?

Airtel said that the network will result in improved speeds for software flashing – a critical operation for all vehicular dispatches – and allow managers to undertake multiple software flashing sessions in parallel, thereby reducing the turn-around time for an operation. The computerised vision-based inspection will be fully automated resulting in improved paint quality.