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Telcos Set For Major Cost Relief As TRAI Plans Up To 50% Cut In Backhaul Spectrum Fees
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The Telecom Regulatory Authority of India (TRAI) is reportedly planning to slash backhaul spectrum pricing by up to 50%, according to a report.
spectrum pricing
The Telecom Regulatory Authority of India (TRAI) is reportedly planning to slash backhaul spectrum pricing by up to 50%, according to sources cited by ET. The move is expected to significantly ease the financial burden on telecom operators, potentially saving them hundreds of crores annually.
Currently, telcos pay between 0.15% and 3.95% of their Adjusted Gross Revenue (AGR) for backhaul spectrum, with rates varying based on the number of carriers used. Backhaul spectrum—radio frequencies that connect cell towers—is allocated administratively by the government. TRAI’s recommendations are expected soon, with the Department of Telecommunications (DoT) taking the final decision, ET reported. The industry’s annual payment for backhaul spectrum is estimated at around Rs 4,000 crore.
Under the current system, charges rise with the number of carriers a telco operates, calculated as a percentage of AGR using a weighted average formula. “TRAI’s recommendations are expected in the coming days,” an official told ET, requesting anonymity. “The DoT will take a final call after reviewing the proposals,” the official added.
During consultations, telecom operators requested a flat, lower rate for backhaul spectrum. They argued that the original pricing was set when access spectrum was also allocated administratively, whereas mobile spectrum is now auctioned competitively, highlighting the need for rationalisation.
Backhaul spectrum includes Microwave Access (MWA) and Microwave Backbone (MWB) frequencies. Officials indicate TRAI is considering a 50% cut for MWA carriers and a low, flat rate for MWB carriers. The industry expects that cheaper backhaul spectrum will benefit operators and end users alike by enabling more equitable access to services.
The spectrum covers the 7/13/15/18/21 GHz bands, as well as the E band (71-76 GHz and 81-86 GHz), which is key for 5G backhaul. V band spectrum (57-64 GHz and 64-71 GHz) has seen limited adoption so far. After the 2022 5G auction, E band frequencies were provisionally allocated administratively for 5G expansion. While auctioning backhaul spectrum had been considered earlier, the new Telecommunications Act mandates administrative allocation, prompting the regulator to focus on pricing decisions.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
November 30, 2025, 13:29 IST
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