Your building’s digital infra will be rated. But who will pay?

The Telecom Regulatory Authority of India (Trai) is working on a framework wherein a standard method to evaluate digital connectivity inside properties—aimed at ensuring strong indoor mobile and internet signals—will be notified. Last month, the regulator released for consultation a draft manual for Assessment of Digital Connectivity under Rating of Properties for Digital Connectivity Regulations, 2024.

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Telcos, represented by the Cellular Operators Association of India (COAI), argue that property managers–read: real estate developers and owners–should bear the full cost and compliance burden, including maintenance and obtaining the building rating. On the other hand, real estate companies, represented by Asia Pacific Real Assets Association (APREA), have asked Trai to remove these responsibilities from their scope, saying the infrastructure should be owned, operated, and maintained by the digital connectivity infrastructure providers themselves.

COAI counts Reliance Jio, Bharti Airtel and Vodafone Idea as its members. APREA counts Anarock, Brookfield, DLF, BlackRock, Brookfield, DLF as its members.

To be sure, poor in-building connectivity has become a growing concern for consumers, who often struggle with weak mobile signals and unreliable internet access inside homes, offices, and commercial complexes — despite strong coverage outside. The ratings will enable consumers to make informed decisions when selecting the area of their residence, offices, or at airports, and other areas.

“This is very important as far as the telecom quality is concerned," Trai chairman Anil Lahoti was quoted as saying by PTI in a recent interview. “The provision of in-building solution inside the building premises will complement the network being provided outside by the telecom service providers."

In its draft module, Trai said property managers will be responsible for application for ratings of buildings, documentation and compliance, maintenance of digital connectivity infrastructure, and consumer communication and tenant management. Digital connectivity rating agencies (DCRAs) will be registered with Trai and will evaluate and award ratings for property under the regulations.

Disagreement's cause

Who will pay for the ratings is what has caused the disagreement.

“Property managers are the primary beneficiaries of building ratings—gaining enhanced marketability, the ability to command premium rents, improved tenant retention—there is a compelling case for them to bear the costs associated with rating of buildings," the COAI told Trai in its submission on the draft module, adding that it should be incumbent upon the property manager to fund and execute the rating process while proactively securing and maintaining all necessary digital infrastructure—including provisions for telecom operators access—to achieve and sustain a certified rating.

In fact, telecom operators want Trai to include in the framework that the responsibility for bearing the cost of establishing network infrastructure, power and associated equipment should rest with the property manager.

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However, real estate developers want Trai to delete the clause that documentation and compliance is a responsibility of property managers.

“Property manager may not own the DCI (digital connectivity infrastructure) and may only facilitate in implementing a digital connectivity infrastructure within a building, owing to the various regulations associated with deployment of a Digital Connectivity Infrastructure," APREA said in its submission to Trai.

“Moreover, a Property Manager is essentially a person (Developer) and/or a Property Management firm which looks into account the various aspects of Building infrastructure including Civil, Electrical, HVAC (heating, ventilation and air conditioning), Firefighting, Plumbing, Lifts, Security Managementetc., but may not possess the capabilities of complex telecom infrastructure architecture," it added.

Assurance to consumers

Telecom operators argued that better digital infrastructure and connectivity would give assurance to consumers while assessing property for purchase or use. “This will help the Property Managers of the said building/premises to build moretrust with the consumers and also influence the consumer’s choices," they said, adding that property managers can use the same to market their properties.

As per the framework proposed by Trai, the buildings will be rated on diverse connectivity options, such as fibre optic networks, wifi, cellular connectivity and satellite broadband, based on their capability to provide seamless indoor and outdoor network coverage.

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Even as Trai has proposed a framework, telecom operators want the regulator to form a committee consisting of representatives from academia, ministry of housing and urban affairs (MoHUA), department of telecommunications (DoT), telecom operators, etc, to advise on the matter related to proliferation, popularisation and adoption of rating framework.

“We reiterate our submission that the DCI implementation should be backed by the law. For instance, RERA (Real Estate Regulatory Authority) Act does not cover DCI at present. Mandating digital connectivity inside the buildings and ensuring that this is available to all licensed Telecom Service Providers on non-discriminatory basis should be incorporated in the Model builder-buyer agreement prescribed by RERA for covering it under the jurisdiction of this Act and its enforceability by the RERA," Jio wrote in a separate submission to Trai on the subject.

More disagreements

Notably, telecom operators have also expressed concerns over compliance requirements in the draft framework proposed. In one of the rating criteria, Trai has given weightage to minimum download speed of 10 Mbps for 4G or 100 Mbps for 5G technology inside buildings. The telecom operators, however, have opposed the same stating that the speed metrics should be modified in accordance with an already stated criteria.

“For 4G, throughput equal to or better than 2 Mbps, successful file download test cases in percentage. For 5G, 100 MB size is to be downloaded on each selected test location within 5 minutes," Airtel said in its response to Trai.

Continuing disagreements over the use of public wifi, telecom operators have also asked Trai to either remove the same from the criteria while assessing the ratings of the buildings or reduce its weightage. “With advanced mobile technologies (4G/5G) providing good data speed, the very utility of using public Wi-Fi for data consumption is diminishing and the rating framework should not encourage any inefficiencies. Further, if mobile coverage is addressed inside buildings/premises, there will be no need left for users to latch to public Wi-Fi," COAI said.

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Among other things, telecom operators want Trai to implement the building ratings system in phases. For instance, certain buildings with high public footfalls such as airports, ports, railway stations, public transport stations, bus stations, large shopping complexes, industrial estates, major market areas, among others, can be asked to have rating compliance within two years of issue of the regulatory framework by TRAI or two years from obtaining occupancy certificate,whichever is later.

In 2023, Trai had also submitted its recommendations to the government on 'Rating of Buildings or Areas for Digital Connectivity', to create an ecosystem for building of DCI as a part of any development activity. Trai has also released the regulation Rating of Properties for Digital Connectivity Regulations, 2024 in October last year to bring a framework for rating of properties for digital connectivity.