COAI Urges Government Action on 6 GHz Spectrum for 5G Expansion

On June 12, 2024, the Telecom industry body Cellular Operators Association of India (COAI) said it expects the government to assign the 6 GHz band spectrum for expanding 5G networks. Additionally, COAI proposed implementing a policy where major applications would bear the cost of excessive data traffic they generate. The association, representing key players like Reliance Jio, Bharti Airtel, and Vodafone Idea, outlined these priorities in its wishlist for the newly formed central government.

The Cellular Operators Association of India urged the government to enhance the number of test labs to hasten the approval of network equipment, facilitating the rapid deployment of telecom networks. Referring to a GSMA report, COAI highlighted that India could save up to USD 10 billion annually in 5G network deployment by leveraging the 6 GHz spectrum.

The Director General of COAI, SP Kochhar, said, “India has made a giant leap in 6G innovations through initiatives, such as Bharat 6G Alliance and Bharat 6G Vision, which envisage India to be a leader in 6G innovations and deployment. To achieve this mission, the industry needs massive spectrum resources which can deliver the higher capacity required by 6G. Thus, we urge the government to strategically plan the 6 GHz resources for 6G as well.”

The apex telecom industry body has additionally urged the government to address long-standing concerns regarding spectrum pricing and associated revenue issues. Despite significant investments in 4G and 5G deployment, telecom service providers (TSPs) in India continue to contend with some of the lowest ARPU (average revenue per user) levels globally.

The Director General further added that, as per research by CLSA (Credit Lyonnais Securities Asia), India’s spectrum costs as a proportion of annual recurring telecom revenues are significantly higher compared to key global markets such as China, Germany, the UK, Brazil, and neighbouring Pakistan. In this context, there was a strong urging for TRAI to revisit its spectrum pricing recommendation to align with global norms.

COAI has asked the telecom regulator Trai to eliminate minimum rollout obligations and grant telecom service providers flexibility in devising their rollout strategies after acquiring spectrum. The industry body has also reiterated its call for implementing a fair share data network usage policy. Under this policy, major traffic generators such as Google, Facebook, and Netflix would contribute a portion of their revenue to TSPs that provide the essential infrastructure for their data needs.

COAI has estimated that the increase in data traffic on telecom networks and revenue generated by Large Traffic Generators (LTGs) amounts to approximately ₹10,000 crore for the government. The industry body has urged the government to swiftly tackle the issue of telecom network equipment theft.

SP Kochhar, said, “We acknowledge that the government has taken several key measures to address this. This includes categorising equipment theft as a cognisable and non-bailable offence of causing damage to telecom infrastructure under the Telecommunications Act, 2023. In addition to implementing these, we request the DoT to urgently intervene in the matter.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.