TRAI Advances Telecom Sector with New Sharing and Leasing Recommendations

In a landmark move, the Telecom Regulatory Authority of India (TRAI) has unveiled a set of recommendations aimed at significantly enhancing the efficiency and utilization of India’s telecommunication resources. Released yesterday, these guidelines focus on three pivotal areas: Telecommunication Infrastructure Sharing, Spectrum Sharing, and Spectrum Leasing. This strategic shift, directed by a request from the Department of Telecommunications (DoT) dated back to December 7, 2021, and reinforced by subsequent communications, aims to liberalize and maximize the potential of the nation’s telecommunication assets.

The DoT’s vision to optimize resource utilization among telecom licensees catalyzed the need for these recommendations. Highlighting the progressive nature of these proposals, the newly implemented Telecommunications Act of 2023 aligns seamlessly, granting the Central Government authority to allow sharing, trading, leasing, and surrendering assigned spectrum under prescribed conditions. This regulatory evolution underscores India’s commitment, articulated in the National Digital Communications Policy (NDCP) 2018, to leveraging spectrum as a vital natural resource for achieving socio-economic objectives.

The genesis of the TRAI’s recommendations followed a comprehensive stakeholder consultation process. On January 13, 2023, TRAI issued a Consultation Paper soliciting opinions on the proposed changes. The response was robust, with 21 comments and five counter comments received, culminating in an open house discussion via virtual mode on May 24, 2023. The insights garnered from these discussions were instrumental in shaping the final recommendations.

Among the recommendations is the proposal for telecommunication service licensees to freely share passive and active infrastructure elements. Passive elements include tangible assets like buildings, towers, and electrical equipment, while active elements encompass components directly involved in telecommunication service delivery. This sharing is envisioned across all types of telecommunication service licenses, promoting a more integrated and cooperative sector.

A significant emphasis is also placed on Universal Service Obligation Fund (USOF) projects, which facilitate telecommunication services in remote and underserved areas. The TRAI advocates that future USOF agreements should mandate infrastructure sharing among at least two other telecom service providers to prevent monopolistic practices and encourage widespread network access. Additionally, the TRAI suggests the introduction of mandatory roaming in remote areas for networks built with government funding, aiming to alleviate connectivity issues faced by residents in these regions.

Furthermore, the TRAI’s recommendations include advanced proposals like inter-band spectrum sharing and leasing access spectrum among providers. Such measures would enable telecom operators to pool spectrum resources or use shared radio access networks, enhancing service quality and network coverage. Another forward-looking suggestion is exploring authorized shared access (ASA) techniques. This would allow telecom operators to use spectrum currently assigned to government agencies or other entities on a secondary basis, promoting optimal utilization of this scarce resource.

Implementing these strategies is not merely about regulatory compliance but is set to revolutionize how telecom services operate in India. By reducing operational costs and speeding up the deployment of telecom infrastructure, these recommendations aim to extend telecommunication coverage, particularly in underserved areas, thereby democratizing access to digital services and fostering inclusive growth.

The potential for inter-band spectrum sharing and spectrum leasing, currently under TRAI’s recommendation phase, could mainly transform the telecom landscape. Unlike the existing intra-band sharing, these new forms of spectrum utilization would allow for more dynamic and flexible use of available resources, which is crucial for meeting the burgeoning demand for mobile and internet services across the country.

In conclusion, the TRAI’s recommendations mark a strategic pivot towards India’s more collaborative and efficient telecommunication sector. By fostering an environment conducive to the sharing and leasing infrastructure and spectrum, these guidelines are poised to enhance service quality, reduce costs, and expand network coverage, thereby playing a crucial role in achieving the broader goals of India’s digital transformation.

The recommendations are available for public review on the TRAI website, signalling the beginning of a new chapter in India’s telecom narrative. For clarification/ information, Shri Akhilesh Kumar Trivedi, Advisor (Network Spectrum & Licensing), TRAI, may be contacted at +91-11-23210481 or by email at advmn@trai.gov.in.