The Telecom Regulatory Authority of India (Trai) on Wednesday has proposed to simplify the allocation and pricing of microwave backhaul spectrum across traditional and high-capacity bands. 

The regulator has suggested that microwave spectrum in the 6 GHz (lower), 7 GHz, 13 GHz, 15 GHz, 18 GHz, 21 GHz, E-band and V-band be assigned administratively, as mandated by the Telecommunications Act, 2023, rather than through auctions. Backhaul spectrum is the bandwidth connecting mobile towers to telecom cores which helps in handling surging data traffic. 

Simplified and Reduced Pricing

Under the proposal, for mobile operators, the current fee structure, where the first microwave carrier alone attracts a 0.15% levy on adjusted gross revenue (AGR) and subsequent carriers cost more would be replaced with a flat charge of 0.1% of AGR per carrier.

Charges for point-to-point microwave links, used by enterprises and captive networks, are also set for drastic cuts. Proposed annual rates will fall from ₹7.2 lakh to ₹75,000 per carrier in the 6 GHz and 7 GHz bands and from ₹3.6 lakh to ₹25,000 in the 13 GHz, 15 GHz, 18 GHz and 21 GHz range. E-band point-to-point links would be priced at ₹25,000 per carrier per year, while V-band links would cost just ₹2,500, according to the proposal. 

New Framework

Beyond pricing, Trai has laid out a new framework for assigning blocks of spectrum to mobile operators for network backhaul, particularly in the 13 GHz, 15 GHz and 18 GHz bands. Operators may hold up to eight carriers of 28 MHz each per service area. Additionally, the E-band ceiling has been raised to three 250 MHz paired carriers per operator per circle, increasing available capacity for 5G backhaul. 

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