COAI seeks rationalised pricing for microwave backhaul spectrum

Benchmarks Nifty22,951.50252.66FEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.41 % Invest NowFEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.8 % Invest NowEnter search text:

The Economic Times daily newspaper is available online now. Read Today's Paper COAI seeks rationalised pricing for microwave backhaul spectrumBy Neil Ghai, ET BureauLast Updated: Oct 29, 2026, 03:02:00 PM ISTSynopsis

The Cellular Operators Association of India emphasizes the need for early implementation of TRAI's spectrum charge recommendations. This follows the Department of Telecommunications retaining the existing pricing framework despite previous recommendations for reductions. COAI points out that the current structure poses a significant burden on operators' costs. As demand for microwave backhaul is expected to grow substantially, predictable charges are essential.

New Delhi: The Cellular Operators Association of India (COAI), on Thursday, urged the early implementation of TRAI’s recommendations to rationalise microwave backhaul spectrum charges, saying demand for these network links could rise three to five times over five years as 5G networks mature.

Microwave backhaul carries data between mobile towers and the core network, helping operators connect users to telecom services. It is particularly important in areas where laying fibre-optic cables is difficult, delayed or expensive.

The push comes amid a setback for telecom operators, with the Department of Telecommunications (DoT) retaining the existing pricing framework for microwave backhaul spectrum despite Telecom Regulatory Authority of India (TRAI’s) recommendation to cut charges by up to 55%.

TRAI had proposed a uniform charge of 0.1% of adjusted gross revenue (AGR) per carrier, replacing the current slab-based system, under which fees rise with each additional carrier. However, the draft Telecommunications (Administrative Allocation of Spectrum) Rules, 2026, published on June 17, restored the existing regime.

COAI said the existing charging structure places a disproportionate burden on backhaul spectrum. Nearly 75% of operators’ total spectrum usage charge (SUC) payouts relate to backhaul spectrum, compared with approximately 25% for access spectrum, which enables mobile devices to connect to networks.

Live Events

The industry body said a simpler and more predictable pricing framework would give operators greater certainty in planning investments and flexibility to combine fibre and microwave links based on local requirements. This could support the expansion of 4G and 5G networks, particularly in rural, remote and fibre-deficient areas.

“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,” said Lt Gen Dr S P Kochhar, director general of COAI.

The industry body said backhaul demand could grow three to five times over the next five years across most licensed service areas (LSAs), making predictable charges increasingly important. It urged the early acceptance and implementation of the TRAI’s recommendations, framing the move as a network infrastructure reform rather than merely a reduction in operator costs.
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onCOAImicrowave backhaul spectrumTRAI recommendations5G network expansiontelecom operatorstelecommunications infrastructurespectrum chargesbackhaul demandadjusted gross revenue

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...moreless
(You can now subscribe to our Economic Times WhatsApp channel)
Read More News onCOAImicrowave backhaul spectrumTRAI recommendations5G network expansiontelecom operatorstelecommunications infrastructurespectrum chargesbackhaul demandadjusted gross revenue

(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.)

...morelessContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Big Price Drop! Flat 40% Off

Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferClaim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '

' + h3 + '

' + h4 + '

' + listing + '

'; $('#paidSCWidget').html(html); var callback = $('#paidSCWidget').attr('data-callback'); if(callback && window[callback]) { window[callback](); } customDimension.dimension72 += ' | Shown SYFT no Trial_With Missed Paywalled Articles Collection'; } else { _processNormal() } } }); } else { _processNormal(); } } catch (e) { _processNormal(); } }, function () { _processNormal(); }); //console.log('storyCollectionLoad', $); }

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

• Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

  What Adani’s US indictment means for India Inc’s overseas fundraising

• Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

  Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

• Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

  The problem with lab grown diamonds

• Why a falling rupee is a better option for the economy

  A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Alpha Trade

Get daily trade ideas from SEBI-registered research analysts.

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

All-in-one stock research with Stock Score, peer comparison & key signals.

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Manage your money efficiently with this weekly money management guide.

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

5Enjoy Complimentary Subscriptions From Top Brands

Stream new documentaries from all across the world every day.

Stories you might be interested in