Telcos may get sop for backhaul infrastructure

The government may provide subsidy to telecom operators from the Universal Service Obligation Fund (USOF) towards setting up of backhaul infrastructure in rural and remote areas.

The government is also considering the proposal to permit public sector companies and stand-alone infrastructure providers to bid for passive infrastructure projects that are supported by the USOF.

All operators are charged 5 per cent of the aggregate gross revenue towards the USOF, a levy used to fund the growth of rural telephony.

Backhaul involves the cost of laying optic fibres or setting up microwave links between the source of call origination and the nearest mobile service centre (MSC). Radio waves first carry the call to the base station, from where it is carried to the base station control (BSC), before being backhauled to the MSC.

The Department of Telecommunications has already reached a broad consensus with operators to provide financial support from the USOF for active (base tower stations and power) and passive (land and towers) infrastructure-sharing through a bidding process.

"Following the demand from operators for subsidy towards backhaul infrastructure, as it constituted an important part of the network, we have sought their views on the issue. Providing financial support for backhaul is a complex proposition as it would be dependent on technology, area of operation and existing transmission media "" all of which are highly variable," said a government official.

In a communication to service providers, the DoT has asked operators to submit before the month-end their views on "how backhaul could be assisted in a fair and transparent manner."

They have also been asked to clarify their stance on whether passive infrastructure creation must be solely assigned to the lowest bidder or if separate bids are to be invited from stand-alone infrastructure providers and PSU companies for the purpose. Besides, operators' comments have also been sought on the minimum distance between towers in rural and remote areas.