At present, microwave is the dominant backhaul technology for cell sites. As per estimates, nearly 80 per cent of cell sites in India have microwave-based backhaul links. Although microwave cannot match the capacity of fibre as a backhauling platform, it can cater to the bandwidth requirements in pre-aggregation segments. It is a cheaper, scalable, reliable and easily deployable option, which makes it a cost-effective alternative to traditional copper circuits and optic fibre links. Further, microwave backhaul is suitable for any terrain, and in some rural and remote locations, is the only practical high capacity backhaul solution.

Currently, in India, the assignment of microwave access and microwave backbone (MWA/ MWB) carriers to service providers is undertaken administratively based on the latter’s demand and availability of spectrum spots. The charging of MWA/MWB carriers is regulated as per the adjusted gross revenue (AGR)-based annual spectrum usage charges notified by the Department of Telecommunications (DoT) in its order dated November 3, 2006 and its amendments dated November 10, 2008 and February 19, 2009. However, these orders were set aside by a judgment by the Telecom Disputes Settlement and Appellate Tribunal, and the matter is now pending with the Supreme Court.

In this regard, DoT sought the Telecom Regulatory Authority of India’s (TRAI) recommendations on the methodology for allocation and pricing of MWA/MWB carriers for new and existing service providers for initial and additional allocations, criteria for withdrawal of excess allocation of MWA/MWB carriers from existing service providers, annual spectrum usage charges and criteria for pricing for different bands.

Subsequently, TRAI has released a consultation paper on “Allocation and pricing of MWA and MWB radio frequency carriers”. The consultation paper seeks the views of stakeholders on the requirement, assignment and pricing of MWA/MWB carriers.

Key issues for consultation

•How many total MWA/MWB carriers should be assigned to a service provider deploying 2G, 3G and broadband wireless access or a mix of these technologies? How many MWA/MWB carriers need to be assigned to telecom service providers in the case of 2G, 3G and broadband wireless access at the beginning of service roll-out?

•Should excess spectrum be withdrawn from existing operators? What should be the criteria for withdrawal of excess allocation of MWA/MWB carriers?

•What should be the preferred basis of assignment of MWA/MWB carriers to telecom service providers, that is, “exclusive” or “link-to-link-based assignment”? If the “exclusive” basis assignment is preferred, should MWA/MWB carriers be assigned administratively or through auction? If the “link-to-link” basis assignment is preferred, how should the carrier assignment for different links be carried out, particularly in nearby locations?

•Considering the fact that different service providers may require additional carriers at various points of time, what should be the assignment criteria for allocation of additional carriers for MWA/MWB?

•How can it be ensured that the assigned spectrum carriers are used optimally and service providers are encouraged to move towards optic fibre cable technology?

•Should an upfront charge be levied on the assignment of MWA/MWB carriers, apart from the annual spectrum charges?

•What should be the pricing mechanism for MWA/MWB carriers?

•Should the annual spectrum charges be levied as a percentage of the AGR or on a link-by-link basis or a combination of the two? In the case of percentage AGR based pricing, is there a need to change the existing slabs prescribed by DoT in 2006 and 2008?

•In case a “link-by-link”-based charging mechanism is adopted,

•Should spectrum be priced differently for different bands (6 GHz/7 GHz/13 GHz/15 GHz/18 GHz/21 GHz/26 GHz/b28 GHz/32 GHz/42 GHz, etc.)? If yes, what formula should be used to determine the charges?

•What factors should be considered in the formula?

•Should the option of assignment of MWA carriers in all spectrum bands in the 6-42 GHz range be explored in line with other countries? What are the likely issues in the assignment of MWA carriers in these additional spectrum bands?

•What is the appropriate time for considering the assignment of MWA carriers in higher frequency bands, for example,  E-band and V-band? Should E-band be fully regulated? What pricing mechanism would be appropriate for these bands?

TRAI’s consultation paper has been released at a time when operators are witnessing a surge in data traffic, facilitated by the introduction of next-generation access technologies, growing adoption of smartphones and increasing cell deployment. This is putting pressure on operators’ existing backhaul infrastructure. Deliberations on allocation and pricing of MWA/MWB carriers will go a long way in addressing the backhaul challenges faced by the industry. Written comments on the consultation paper are invited from stakeholders by April 21, 2014 and counter-comments by April 28, 2014.