COAI’s push for rationalised microwave backhaul pricing hinges on a simple regulatory principle: backhaul spectrum is an enabling input, not a consumer-facing revenue generator. The current escalating slab system—where charges rise sharply with each additional carrier—penalises capacity densification precisely when 5G traffic demands it.
The Department of Telecommunications has thus far retained the legacy framework in its draft rules, prioritising revenue stability over the regulator’s relief logic. This impasse leaves Indian operators paying backhaul rates that industry bodies have claimed are orders of magnitude above comparable markets, undermining the economic case for microwave densification where fibre is unviable.
Global Trends in Microwave Backhaul Spectrum
Internationally, the policy consensus has moved decisively toward affordable, administratively assigned backhaul spectrum. GSMA research indicates microwave and millimetre-wave links will carry over 55% of global macro-cell backhaul through 2027, with fibre second.
Regulators are increasingly treating backhaul bands as infrastructure inputs rather than auction revenue sources. The GSMA explicitly warns that high backhaul spectrum prices are “a barrier to mobile network evolution” and urges timely availability under reasonable licensing terms.
Sharing his thoughts o the above issue, Lt. Gen. Dr. S.P. Kochhar, Director General, COAI, explained, “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.”
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