Telcos seek pricing cap on in-building network infra at public places

COAI has asked the regulator to examine NMIAL's conduct on RoW denial and seek a cost-based pricing framework, including ceilings, for in-building telecom infrastructure at airports and similar public

India’s major private telecom service providers have sought urgent intervention from the Telecom Regulatory Authority of India (Trai), urging it to cap charges for in-building network infrastructure at public premises such as airports. The move comes amid their standoff with Navi Mumbai International Airport (NMIA) over providing connectivity.

 

In a letter to Trai Chairman A K Lahoti, dated January 13, Cellular Operators Association of India (COAI), representing the carriers, has demanded that the regulator examine the conduct of NMIA in denying right of way (RoW) permissions to them and “creating an exclusive, monopolistic in-building telecom arrangement at a public airport, resulting in a bottleneck situation leading to market failure”. Business Standard has seen a copy of the letter.

 

“Trai’s intervention is essential to address this emerging structural issue, which, if left unregulated, has the potential to be replicated across various public places/infrastructure projects, thereby undermining competition and consumer experience,” COAI has said.

 

Telcos had previously reached out to the Department of Telecommunications (DoT) for intervention after flyers complained of absence of mobile connectivity following the opening of NMIA on December 25, as the two sides were unable to reach a commercial agreement. Telcos have now asked the regulator to take steps by creating a cost-based pricing framework, including ceilings for in-building telecom infrastructure on public or captive premises like Metro stations and airports.

 

COAI has argued that the NMIA, which is licensed only as a virtual network operator (VNO), has assumed control over the in-building access infrastructure with a public airport, which is an essential facility, creating a monopoly.

 

Carriers have said that in the absence of cost-based regulation, they are left with no option but to accept charges — about ₹92 lakh per month per operator, aggregating to nearly ₹44.16 crore per annum for four mobile operators. They said these charges were grossly disproportionate to the underlying cost of related infrastructure, and significantly exceeded the capital and operating expenditure ordinarily required for deployment of an independent IBS (in-building solution) network.

 

The regulator has been urged to lay down and enforce a cost-based pricing framework and appropriate price ceilings for in-building telecom infrastructure in situations where a single entity exercises monopoly control over access at public or captive locations such as airports, Metro stations, and similar public premises.

 

“Recommend appropriate directions to ensure that public entities grant RoW permissions to licensed TSPs (telecom service providers) on a non-discriminatory basis, or alternatively, that any shared infrastructure mandated in such locations is provided strictly on regulated, transparent, and cost-oriented terms,” the industry body said in its letter.

 

COAI has also asked Trai to take note of misleading public communications by NMIA regarding network coverage, and issue suitable guidance to prevent attribution of fault to telcos where RoW denial is the underlying cause. Trai is yet to respond to these demands.

 

Business Standard had reported earlier that NMIA has proposed charging telcos for IBS infrastructure at rates similar to those at Mumbai International Airport Ltd (MIAL), but telcos claimed that the rates continue to be prohibitive. 

An NMIAL spokesperson however denied the allegations that right of way was being denied or that Rs 44.16 crore was being demanded as charges from the carriers. It also added that telecom connectivity was available with BSNL bring onboarded by the airport. 

 

"The pricing for neutral-host IBS services at NMIAL is aligned with rates already established and implemented at other PPP airports across India and is fully in line with prevailing industry benchmarks. Further, contrary to the allegations made by the Cellular Operators Association of India (COAI), Right of Way (RoW) has never been denied to any Telecom Service Provider at NMIA. NMIAL has maintained regular engagement and transparent communication with TSPs and has consistently offered IBS services on terms comparable with existing industry standards," it said in a statement late Wednesday evening. 

 

The company added that globally most airports adopt a single, neutral-host telecom infrastructure to ensure uniform coverage, safety, and operational efficiency, and the company has followed this framework, which is also adopted at major Indian airports such as MIAL, DIAL, BIAL, and HIAL. 

 

"The decision to deploy a state-of-the-art In-Building Solution (IBS) at NMIAL as a neutral host is based on learnings across airports, where certain mission-critical zones—such as baggage handling areas, utility buildings, and Air Traffic Control (ATC)—often receive sub-optimal coverage when left to individual Telecom Service Providers (TSPs), which typically prioritise high passenger-density areas. Such gaps can lead to passenger inconvenience and impact overall airport efficiency. The neutral-host model ensures seamless, uniform, and secure connectivity across all airport zones," it added.