DoT retains backhaul spectrum pricing, rejects Trai’s cut proposal

Mumbai: The department of telecommunications (DoT) has retained the existing pricing framework for backhaul spectrum despite the regulator proposing reductions of up to 55% to ease network costs, dealing a setback to telecom operators.

The Telecom Regulatory Authority of India (Trai) had proposed a uniform charge of 0.1% of adjusted gross revenue (AGR) per carrier, replacing the current slab-based structure under which operators pay progressively higher fees for additional carriers.

Trai had argued that lower backhaul costs would improve network economics, encourage greater deployment of backhaul links and ultimately enhance service quality.