TRAI’s views on mid-band auction, allocation of backhaul spectrum to expedite 5G rollout: COAI

The Telecom Regulatory Authority of India (TRAI)’s suggestion to expedite the auction of available mid-band spectrum (3300MHz to 3600MHz) and allocation of spectrum in millimeter-wave (mmWave) range for IMT-2020, along with assignment of the backhaul spectrum in a timely manner to telecom operators will strengthen 4G services and infrastructure and accelerate 5G implementation in India, industry body Cellular Operators Association of India (COAI) said.

Additionally, TRAI’s recommendation on exemption of RoW charges for five years (from FY 2022-23 to FY 2027-28) for expediting laying of common ducts will “significantly reduce the overall cost of rollout for TSPs”, COAI said.

It added that a national RoW portal as well as streamlining of RoW permission process with increased participation of utility departments and central agencies, and uniform restoration charges will lead to greater transparency in decision-making and boost rollout of services.

“These steps will go a long way in boosting India’s 4G services and infrastructure, and in paving the way for the smooth roll out of 5G services in India in the near future. We are confident that the suggestions provided by TRAI will be duly considered and implemented by the Central Government,” said SP Kochhar, DG, COAI.

COAI represents telecom giants Reliance Jio, Bharti Airtel, and Vodafone Idea and telecom gear makers such as Ericsson, Cisco, Juniper Networks, among others.

To recall, Indian telecom operators, in particular, have been demanding adequate mmWave spectrum as it is believed to enable enhanced mobile broadband (eMBB) and Fixed Wireless Access (FWA) use cases. It is also said to provide high-speed low-latency required by 5G applications.

They have also been reiterating that the base reserve price of the premium 700MHz band be revised as the current price of Rs 6,568 crore per unit pan-India is too high to bid for, and it is one of the reasons 700MHz band went unsold in the spectrum auctions conducted by the Department of Telecommunications (DoT) in March 2021.

The telecom department though has made no reference to the sector regulator for the base price revision.

“5G has the potential to become the future communication platform of choice for every industry like Manufacturing, Education, Health, Entertainment, Real estate, etc. 5G, through its inherent strengths, will also enable the growth of new-age technologies like IoT, M2M, AI, AR, VR, and blockchains besides fixed wireless high-speed broadband networks,” Kochhar said.

“It is critical to ensure that the telecom industry remains financially strong. The financial health of the sector has to be safeguarded and these recommendations from TRAI will boost the financial viability of the industry to meet the investment expectations,” Kochhar added.

While billionaire Mukesh Ambani-backed Jio and Sunil Mittal’s Airtel have been raking up subscribers on quarter, third-placed Vodafone Idea has been woefully losing its subscribers to the rivals.

The telecom department has sought Rs 58,254 crore from Vodafone Idea towards AGR dues, of which the ailing telco has paid Rs 7,854 crore. Its AGR liabilities, including interest, are now around Rs 62,810 crore, according to DoT’s calculation, the company said.

Its deferred spectrum liability stood at Rs 1.06 lakh-crore in the quarter ended June.

Vodafone Idea owes DoT more than Rs 1.68 lakh-crore by way of deferred spectrum payment and AGR dues.

Its weak financials came to the fore of public when the company’s co-promoter group Aditya Birla Group (ABG) offered to handover its stake in the company to the government, warning that without a relief package the company would be at an “irretrievable point of collapse”.