The Telecom Regulatory Authority of India (TRAI) is reportedly expected to reduce backhaul spectrum charges by up to 50 per cent, a move that would ease the financial load on telecom operators and enable annual savings of several hundred crore rupees. At present, operators pay 0.15 per cent to 3.95 per cent of their adjusted gross revenue (AGR) for the use of backhaul airwaves, with charges varying based on the number of backhaul carriers deployed.
Under the current regime, the fee escalates with the number of carriers held by an operator and is calculated as a percentage of AGR using a weighted-average formula. Industry executives estimate that telecom service providers collectively spend around Rs 40 billion each year on backhaul spectrum charges.
Further, during consultation rounds, operators pushed for a low, uniform rate for backhaul usage. They pointed out that the existing pricing structure was designed when access spectrum was also allotted administratively. Since mobile spectrum is now acquired via competitive auctions, telcos argued that backhaul pricing requires significant rationalisation.
Telcos emphasised that affordable backhaul spectrum ensures equitable access to telecom services. Bands such as 7-gigahertz (GHz), 13 GHz, 15 GHz, 18 GHz and 21 GHz are commonly used for backhaul links. Meanwhile, the E band (71-76 GHz and 81-86 GHz) is central to 5G backhaul, while the V band (57-64 GHz and 64-71 GHz) is yet to see widespread adoption.
