TRAI May Review Backhaul Spectrum Pricing to Ease Financial Strain on Telcos: Report

The Telecom Regulatory Authority of India (TRAI) is considering a review of the pricing methodology for backhaul spectrum, a move that could ease the financial burden on telecom operators, particularly the financially stressed Vodafone Idea. TRAI will soon release a consultation paper to seek inputs from stakeholders on the potential revision, ETTelecom reported, citing an official familiar with the matter. For the first time, the regulator will propose pricing mechanisms for the E and V bands—high-frequency airwaves increasingly seen as crucial for 5G backhaul.

• Make Telecom Talk My Trusted Source
• 
• 

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

Pricing Mechanism for E and V Bands

“Pricing for E and V bands, also part of the backhaul spectrum, will be given for the first time,” said the official, as mentioned in the report.

Currently, telecom operators pay between 0.15 percent and 3.95 percent of their adjusted gross revenue (AGR) annually as spectrum usage charges for backhaul airwaves. This amounts to an industry-wide outgo of Rs 4,500 to Rs 5,550 crore each year. The charges are linked to the number of backhaul carriers an operator uses, with Vodafone Idea incurring the highest costs, followed by Bharti Airtel and Reliance Jio.

High Spectrum Charges

Officials cited in the report said Vodafone Idea pays the highest percentage as it has the largest number of backhaul carriers, followed by Bharti Airtel, while Reliance Jio has the lowest number of carriers, so it pays at a lower rate.