DoT Plans to Charge Telecom Firms for High-Frequency Backhaul Spectrum: Report

The Department of Telecommunications (DoT) is set to start charging telecom operators for the use of high-frequency radio bands—spectrum currently essential for tower-to-tower communication—marking a key policy shift aimed at monetising India’s wireless infrastructure, NDTV Profit reported, citing sources.

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Also Read: Telcos to Oppose DoT’s Move to Delicense Lower 6GHz Band, Citing 5G Expansion Concerns: Report

Government to Charge for Key Backhaul Spectrum

These high frequencies, including the 6 GHz, 7 GHz, 13 GHz, 15 GHz, and 21 GHz bands, are currently used by major operators such as Reliance Jio, Bharti Airtel, and Vodafone Idea for microwave backhaul, which facilitates the transmission of data and voice traffic between telecom towers. So far, these bands have been available for use without a dedicated fee, barring a nominal Spectrum Usage Charge.

“So far, operators have used these bands without paying any direct fee, except for a nominal Spectrum Usage Charge. However, the government is now moving to monetise this infrastructure,” the report quoted sources as saying.

The government, in coordination with the Telecom Regulatory Authority of India (TRAI), is now working to finalise the terms for assigning these frequencies, including setting a reserve price or base tariff. The terms are expected to be announced within the next two to three months following consultations with telecom companies and industry stakeholders.

Potential Impact on Consumer Tariffs

The move is expected to increase operating costs for telecom operators, who are already under financial stress due to outstanding Adjusted Gross Revenue (AGR) dues. According to the report, industry experts warn that if the pricing framework is not economically viable, some operators may opt out of acquiring these bands.