The Digital Infrastructure Providers Association (DIPA) has requested intervention from the Ministry of Power to consider electricity tariffs under industrial category instead of commercial category for infrastructure providers. The request for intervention comes in the backdrop of DIPA’s assessment that the tower companies spend considerable amount (nearly 30 per cent) of the operating expenditure (opex) in paying power tariffs.
With the roll out of 5G around the corner, the availability of 5G networks would necessarily require network densification in the form of several low distance small cells rather than grand tower/masts. According to DIPA the need to review the electricity tariffs is crucial at this juncture. DIPA asserts that the charges are exorbitant under commercial category on a nationwide basis and seeks consideration of charges for infrastructure providers under industrial category.
As per DIPA estimates, the current number of towers (over 700,000) deployed in the country, under National Broadband Mission targets, are likely to go up to approximately 1.2 million by end 2023 and 1.5 million by end 2024.
