COAI seeks rationalised pricing for microwave backhaul spectrum

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.

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.