TRAI Proposes Pricing Overhaul For Telcos; Backhaul To Boost 5G, Rural Connectivity
The Department of Telecommunications and TRAI are expected to finalise the terms of assignment over the next two to three months, following industry consultations.
The Telecom Regulatory Authority of India has proposed significant changes to the pricing structure of high-frequency spectrum bands utilised by telecom operators. Currently, operators benefit from nominal Spectrum Usage Charges (SUC) under a revenue-sharing model. The new proposal suggests replacing this with a pay-per-use, tower-to-tower pricing system, aiming to enhance pricing efficiency and align costs with actual usage.
The draft consultation paper rolled out on Wednesday by TRAI forms the backbone of India's telecom infrastructure, carrying massive volumes of data and voice traffic across the country. This move confirms NDTV Profit’s exclusive May 22 newsbreak on the matter.
These high-frequency bands—including 6 GHz, 7 GHz, 13 GHz, 15 GHz, and 21 GHz, along with the E-band and V-band—are currently being used by telecom operators such as Reliance Jio, Bharti Airtel, and Vodafone Idea primarily for tower-to-tower communication, also known as backhaul.
As part of the government’s broader digital strategy, this revamp is aimed at lowering costs for telecom firms, improving rural broadband backhaul, and expanding the reach of 5G networks. Officials believe that a more rational and targeted spectrum pricing approach will help bridge the urban-rural digital divide and support faster deployment of next-gen telecom infrastructure.
The Department of Telecommunications and TRAI are expected to finalise the terms of assignment—the conditions under which these high-speed frequencies will be allocated to telecom firms—over the next two to three months, following industry consultations.
TRAI has invited stakeholders to submit comments on the draft paper by the end of June.
