COAI seeks early execution of Trai recommendation on microwave spectrum to boost rural connectivity

New Delhi, Oct 29 (PTI) Telecom industry body COAI has sought early adoption of a recommendation made by sector regulator Trai to rationalise microwave spectrum allocation as it will improve the economics of mobile networks and connectivity in rural and remote areas, the organisation said on Thursday.

     The Telecom Regulatory Authority of India (Trai) has recommended providing backhaul spectrum at a uniform and nominal price through an administrative process and without auction to telecom operators.

     Telecom operators use backhaul spectrum for wireless connection to mobile towers in places where optical fibre connectivity is missing.

     Cellular Operators Association of India (COAI) Director General, SP Kochhar, said microwave backhaul is a critical part of the telecom network architecture, particularly in areas where fibre deployment is difficult, delayed or economically challenging.

     He said that Trai's recommendation for a uniform and rationalised pricing framework for traditional microwave bands is therefore an important step towards improving network economics, resilience and service quality.

     “A simpler and more predictable charging structure will give operators greater certainty for long-term planning and allow greater flexibility in combining fibre and microwave according to geography and network requirements. It will also encourage more efficient utilisation of available spectrum, support 4G and 5G densification, and improve connectivity in rural, remote and fibre-deficient areas. Backhaul requirements are expected to rise significantly with the maturation of 5G networks,” he said.

     At present, telecom operators are required to pay backhaul microwave spectrum as a percentage of their revenue from telecom services. In some cases, the companies are charged annually on a per-kilometre basis for using backhaul spectrum.

     “The existing charging structure also places a disproportionate burden on the backhaul spectrum. While approximately 25 per cent of the total SUC payout relates to access spectrum, nearly 75 per cent relates to backhaul spectrum, even though backhaul is not itself a standalone revenue-generating resource,” Kochhar said.

     He said that it is estimated that backhaul demand could grow by three to five times over the next five years across most of the telecom circles, making a non-escalating pricing structure increasingly important.

     Trai has recommended charging for backhaul spectrum in the range of Rs 2,500 to Rs 75,000 per slot of spectrum for a point-to-point link on an annual basis instead of charging on a kilometre basis.

     For some frequency range, the regulator has suggested charging 0.1 per cent of adjusted gross revenue on a per spectrum slot basis.

     Kochhar said that the request of COAI for early acceptance and implementation of Trai's recommendations on rationalisation of microwave backhaul spectrum charges should not be viewed merely as a reduction in operator input costs, but as a network-led reform that can support wider rollout, better quality of service, stronger resilience and more efficient use of spectrum.

     “As telecom increasingly serves as the value-added horizontal of India's digital economy, the cost framework underpinning network expansion must remain sustainable and investment-friendly," he said.

(This story has not been edited by THE WEEK and is auto-generated from PTI)