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COAI Media Note on Rationalised Pricing of Microwave Backhaul Spectrum

“Microwave backhaul is a critical part of the telecom network architecture, particularly in areas where fibre deployment is difficult, delayed or economically challenging. TRAI’s recommendation for a uniform and rationalised pricing framework for traditional microwave bands is therefore an important step towards improving network economics, resilience and service quality. Backhaul should be viewed as foundational infrastructure that enables access spectrum to deliver its full value to consumers.

A simpler and more predictable charging structure will give operators greater certainty for long-term planning and allow greater flexibility in combining fiber and microwave according to geography and network requirements. It will also encourage more efficient utilisation of available spectrum, support 4G and 5G densification, and improve connectivity in rural, remote and fiber-deficient areas. This is particularly relevant as backhaul requirements are expected to rise significantly with the maturation of 5G networks.

The existing charging structure also places a disproportionate burden on backhaul spectrum. While approximately 25% of the total SUC payout relates to access spectrum, nearly 75% relates to backhaul spectrum, even though backhaul is not itself a standalone revenue-generating resource. Moreover, it is estimated that backhaul demand could grow by three to five times over the next five years across most LSAs, making a non-escalating pricing structure increasingly important.

COAI therefore urges the early acceptance and implementation of TRAI’s recommendations on rationalisation of microwave backhaul spectrum charges. The issue should not be viewed merely as a reduction in operator input costs, but as a network-led reform that can support wider rollout, better quality of service, stronger resilience and more efficient use of spectrum. As telecom increasingly serves as the value-added horizontal of India’s digital economy, the cost framework underpinning network expansion must remain sustainable and investment-friendly.”

An android fan and A Computer Engineer who fell in love with the world of Internet Marketing. Worked on different SEO techniques for small to large Internet properties at Initial days of my Career. I am in love with my passion for Blogging and running several blogs in variety of category.

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