Trai seeks views on backhaul spectrum pricing in relief push for telcos, Vodafone Idea could benefit most

Time of India

2 days ago

The telecom regulator has sought stakeholder comments to review the pricing methodology, future assignment and related terms and conditions of backhaul airwaves, a move which may reduce the financial burden of
telecom operators
, especially debt-ridden
Vodafone Idea
.
The Telecommunications Regulatory Authority of India (
Trai
) on Wednesday sought views on
microwave spectrum
across several key bands — 6 GHz (lower), 7 GHz, 13 GHz, 15 GHz, 18 GHz, 21 GHz, E-Band (71-76 GHz and 81-86 GHz) and V-Band (57-64/66 GHz).
The regulator is also looking to address the potential identification of 7GHz and 15 GHz bands for future mobile services usage.
The recent decision by the government to delicense the lower frequencies in the
6GHz band
has raised questions about protecting existing users in that band.
Backhaul spectrum
is primarily used to connect the towers, and is different from access spectrum, which the telcos buy in auction.
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ET was the first to report, on May 27, that the telecom regulator was considering a consultation paper on overhauling the pricing and allocation methodology of backhaul bandwidth.
Further issues put forth by Trai include earmarking spectrum for fixed wireless access and non-commercial captive users, and prescribing minimum link lengths, among others.
The need for fresh consultation regarding the assignment of microwave spectrum stems from significant changes in the legal framework where, under the new Telecommunications Act, 2023, backhaul waves are to be allocated administratively.
For traditional microwave bands (6-21 GHz) and newer E-band and V-band usage, the regulator has sought comments on demand levels and suitable commercial services. Stakeholders have been asked to weigh in on the assignment method and determine how much spectrum should be earmarked for it.
The consultation paper, released on Wednesday, has more than 50 questions, including the pricing of high-bandwidth E-band and V-band for the first time for backhaul use.
The regulator also sought inputs on the feasibility of allowing low-power indoor and outdoor usage of V-band on a licence-exempt basis, parallel to licensed use.
The latest stakeholder consultation from Trai will also tackle how to levy the spectrum charges and valuation for commercial backhaul in traditional bands.
Currently, telcos pay 0.15% to 3.95% of adjusted gross revenue (AGR), or between Rs 4,500 and 5,550 crore annually, as spectrum charges for using backhaul carriers. The higher the number of carriers used, the more the fees paid.
Experts said reviewing the pricing methodology could ease the financial burden on telecom operators, especially debt-laden Vodafone Idea which has the largest number of backhaul carriers.
The regulator is also consulting on the necessity and criteria for spectrum caps on carriers, and whether existing carriers can be retained under the new policy.
It has fixed June 25 as the deadline for comments and July 9 for counter-comments.
The telcos want a fixed cost for backhaul spectrum and the price to be minimal as they have been paying market-determined rates for access airwaves.
Traditionally, backhaul carriers had been given administratively to telcos, but the practice was stopped after the 2012 Supreme Court verdict. After that, the Department of Telecommunications started allocating backhaul carriers provisionally. But with the Telecommunications Act being implemented now, there is clarity and has led to this fresh consultation on the issue.