# Indian Telcos Urge Government to Adopt Trai Backhaul Spectrum Fee Reform Operators seek relief from high backhaul charges to improve network infrastructure and service quality. - **Source:** [mint - industry](https://www.livemint.com/rss/industry) - **Published:** 2026-10-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/1a4c8a79-c003-4199-bf38-64e605ccd159 ## Call for Regulatory Alignment Major Indian telecom operators, including Bharti Airtel, Reliance Jio, and Vodafone Idea, have formally requested the Department of Telecommunications to implement Trai’s year-old recommendation. The proposal aims to reduce backhaul spectrum charges, which operators argue currently impose a disproportionate financial burden that hinders long-term network planning and infrastructure investment across India. ## The Economic Burden Explained In the 2025 fiscal year, telecom operators paid a total of ₹4,068 crore in spectrum usage charges. Notably, ₹3,051 crore of this amount was attributed specifically to backhaul spectrum. Operators contend that this represents 75% of their total payout, despite backhaul being an enabling infrastructure rather than a direct revenue-generating consumer asset. ## Trai's Proposed Pricing Model The Telecom Regulatory Authority of India proposed a reduction of up to 55% in specific microwave bands. The regulator suggested replacing the existing non-linear, escalating payment mechanism with a uniform spectrum usage charge of 0.1% per carrier. Trai argued that the current structure is unjustified as it treats non-revenue-generating backhaul like access spectrum. ## Government's Current Stance Despite the regulator's recommendations, draft rules released on 17 June maintained existing charges. The Department of Telecommunications kept fees at 0.15% of adjusted gross revenue for the first carrier, scaling up to 3.95% for the 11th carrier. For E-band spectrum, charges remain at 0.15% for the first carrier and 0.3% for the second. ## Strategic Infrastructure Impact S.P. Kochhar of the COAI emphasized that this is a network-led reform rather than a simple cost-cutting measure. A predictable charging structure would provide flexibility in combining fiber and microwave technologies based on geography. This shift is essential for supporting wider network rollout, improving service quality, and ensuring stronger overall infrastructure resilience. ## Projected Financial Consequences Industry estimates suggest that if the Trai proposal had been implemented during the 2025 fiscal year, operators would have collectively saved approximately ₹1,545 crore. These funds could potentially be redirected toward accelerating network deployment. The current non-escalating pricing structure is viewed as increasingly critical as backhaul demand is expected to triple or quintuple. ## Legal and Operational Context The Telecommunications Act 2023 provides a non-auction route for assigning spectrum for services like radio backhaul and national security. Operators have been paying 0.15% of their adjusted gross revenue for E-band carriers since 2022 as an interim measure. This ongoing uncertainty regarding administrative assignment versus auctioning continues to complicate long-term capital expenditure planning. ## Future Network Requirements Backhaul spectrum serves as the vital link between mobile towers and the core network, particularly where fiber connectivity is impractical. As data traffic grows, the industry maintains that viewing backhaul as foundational infrastructure is necessary. Rationalizing these costs is presented as a prerequisite for delivering the full value of access spectrum to consumers. ## Sources covering this story - https://www.livemint.com/industry/telecom/trai-backhaul-spectrum-charge-cut-telecom-operators-seek-relief-11793261462515.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._