Backhaul spectrum clash: Telcos face off against tech giants over India's internet backbone

Mint

9 hours ago

Every time we make a video call, stream a movie, or send a message, there's a lot happening behind the scenes to keep us connected. One important part of this process is something most people don't hear much about—backhaul spectrum, the new battleground between telecom operators and technology companies such as Meta, Google, Amazon.
A rift is also brewing among telcos on India's spectrum allocation method for backhaul services.
Backhaul is the link that connects mobile towers and Wi-Fi points to the main internet network, helping data travel between devices and the wider web. As the government looks to decide how the backhaul spectrum should be allocated, telcos and tech firms have presented sharply different views.
Telecom operators want all such spectrum to be reserved for them owing to growing data traffic on their networks. Technology companies, represented by the Broadband India Forum, are calling for allocation of spectrum to other entities as well, and in some cases, for licence-free use of certain bands to support wider internet access and innovation.
'We are of the view that the demand for these traditional microwave bands will persist due to rapid urbanization and densification requirements (and) increased cellular traffic from 5G and future network technologies. Therefore, the existing spectrum in traditional microwave backhaul bands should be made fully available to TSPs (telecom service providers)," said S.P. Kochhar, director general of the Cellular Operators Association of India, in a submission to the Telecom Regulatory Authority of India (Trai) on 2 July.
The issue of backhaul spectrum is important for India, where patchy fiber connectivity makes wireless backhaul crucial for expanding 5G, rural broadband, and public Wi-Fi networks. However, a lack of clear policy on how backhaul spectrum will be allocated— whether through auction, administrative assignment, or delicensing—has created uncertainty for both telecom operators and tech companies.
Tech companies for a non-auction route
For backhaul purposes, the telecom operators have been assigned provisional spectrum in bands such as 6 GHz and 21 GHz, as well as in E (71-76 GHz, and 81-86 GHz) and V bands (57-64/ 66 GHz). In areas where laying fiber is difficult or delayed, backhaul using E and V bands is critical for supporting 5G and high-speed internet as these bands can wirelessly carry large volumes of data between towers.
According to the department of telecommunications, only 46.09% of the towers in Indiawere connected to the core network using optical fibre cables(called tower fiberization), as of March, underscoring the need for backhaul spectrum to meet higher traffic demand on telecom networks.
'Some of these traditional/legacy spectrum bands are now being used and some more are likely to be used for other mobile/Wi-Fi/satellite services. Hence it may be required not only by TSPs but also for other entities, viz. Satcom Service Providers, Wi-Fi service providers, research institutions and academia for fuelling innovation," the Broadband India Forum told Trai in a recent communication, advocating for a non-auction route for allocating spectrum.
The technology companies forum's and the cellular operators association's submissions to Trai were in response toa consultation on the assignment of the microwave spectrum.
The forum also argued for licence-free use of 9 GHz spectrum in the lower V band (57-66GHz) to support contactless ports, device-to-device data transfer, and motion-sensing.
'V-band is already allowed on license-exempt basis world-wide except for a few countries. If V-band continues to be restricted and licensed, innovative new technologies and products would be unable to see the light of the day and consumers in the Indian market would be deprived of the latest and innovative solutions," it said.
The technology forum added that new technology such as WiGig, which allows wireless data transfer at multi-gigabit speeds, faster than regular Wi-Fi, requires such a band.
Airtel vs Jio on spectrum allocation
Although telecom operators are on the same page on backhaul spectrum, Reliance Jio and Bharti Airtel are at loggerheads over the method for allocation of spectrum.
Jio is against allocating backhaul spectrum without holding an auction, citing national security concerns from non-telco entities. Airtel, echoing the views of other technology companies, has called for a non-auction method for spectrum allocation.
As per Schedule 1 of the Telecommunications Act 2023, backhaul spectrum is among items for which spectrum is to be assigned administratively (the non-auction route).
'The current administrative assignment methodology of temporary assignments at a high percentage of AGR (adjusted gross revenue) as spectrum charge has not worked and a large amount of spectrum remains idle with the government, while the TSPs have shortage of backhaul capacities," Jio told Trai in a submissionon 2 July.
'Unlicensed access to spectrum usable for IMT (international mobile telecommunication) services distorts the level playing field and impacts the investments in the sector, besides being technically ineffective," Jio added.
Airtel said subjecting these bands to auction-based allocation would not jeopardize service continuity due to non-availability of required backhaul spectrum and could create an artificial scarcity by provisioning more spectrum towards access services.
'It is pertinent to note that the operators with limited fiber infrastructure are especially dependent on wireless backhaul, and exposing these critical resources to auction dynamics for varied purposes would create severe competitive imbalances," Airtel told Trai on2 July.
A call for pricing reforms
Both Jio and Airtel, as well as tech companies, however, have called for a reduction in the pricing of backhaul spectrum.
Currently, telecom operators pay the government 0.15% of their adjusted gross revenue for a single E-band carrier—or about ₹96 crore. That's about 3,000 times what telecom service providers in Iraq pay and nearly 1,400 times what TSPs in Saudi Arabia pay, the Broadband India Forum said.
A carrier refers to a block or channel of spectrum that an operator uses to transmit wireless signals; more carriers mean more capacity, but also higher costs.
India follows an escalating payment mechanism that involves charging 0.35% of a company's adjusted gross revenue for two carriers to as high as 1.45% and 2.30% for six and eight carriers, respectively.
'A rational SUC (spectrum usage charge) model which is flat, low, and predictable must be adopted for backhaul spectrum," Airtel said in its submission to Trai. 'Delinking SUC from number of carriers would not only promote efficient deployment but also help optimize access spectrum utilization and improve consumer experience."
Jio has pitched a lower reserve price for spectrum based on the auction method and for easier spectrum payment terms.
Satellite interference
In another potential rift, satellite companies including Eutelsat Group, Amazon Kuiper and Inmarsat, represented by the Global Satellite Operators' Association, have urged Trai to move with caution as it looks to expand backhaul services in the 18 GHz band for telecom networks.
The association said backhaul bands are critical to supporting mobile and fixed wireless infrastructure, particularly in regions where fiber deployment is not feasible. 'However, increased use of these bands must not come at the expense of satellite services that share co-primary status, particularly in the 13 GHz and 15 GHz bands," it said.
The satellite operators association called for a balanced approach to ensure reliable operation of fixed satellite services, especially in frequency ranges that support essential services such as disaster recovery, remote education, and broadband access in underserved regions.
'As the Trai evaluates the potential expansion of spectrum assignment for terrestrial use in the 18 GHz band, Amazon encourages it to take a cautious approach," Amazon Kuiper told Trai on2 July.
'This band—which has historically been 'much less utilized" by terrestrial services to provide radio backhaul service in India—is critical to the Kuiper System's ability deliver reliable, affordable, and widely-accessible wireless broadband access to Indian consumers," the company said.
In May, the department of telecommunications issued guidelines requiring satellite operators to submit a yearly plan to the government showing how they will gradually increase local manufacturing of ground segments of their satellite network in India.
India has so far approved the applications of Bharti Enterprises-backed Eutelsat OneWeb, Jio, and Elon Musk-owned Starlink to launch satellite internet services in India, whereas Amazon Kuiper and Globalstar are waiting regulatory clearances.