Telecom firms get green signal for towers, services on railway land

The move is likely to give 5G network a boost

The Ministry of Railways has opened its telecommunication services to private players, allowing them to install towers on land owned by it, Business Standard has learnt. So far, this right was reserved only for its own telecom arm — RailTel Corporation of India.

This comes months after the Union Cabinet eased land licensing fee (LLF) norms for railway land to attract private investment. In accordance with the new LLF policy, the existing rate of 7 per cent revenue sharing for mobile towers has been scrapped; instead, annual land use charges of 1.5 per cent of the market value of land would be enforced.

According to the policy document reviewed by Business Standard, the move has been undertaken to promote growth of 5G in the country. Zonal Railways have been instructed to make future network requirements of the Railways a decisive factor while granting permissions.

Senior officials in the know said the move has paved the way for significant private participation.

“So far, our telecom requirements were open only to RailTel. Now, our tenders will also be open to private players. Since they would be using them commercially, the Railways can also use the infrastructure through a competitive pricing process.” In 2016, the ministry issued orders barring anyone but

RailTel from installing towers or pole mounts on Railways-owned land which now stand overturned. The latest policy allows the Railways’ 70 divisions to allow installation of pole mounts and small cells in its offices and station premises.

Strong signal

• So far, all telcos but RailTel were barred from installing towers or pole mounts on Railways' land
• The move will help Jio & Airtel, which are scouting land for 5G tower proliferation
• 7% tower revenue sharing agreement for RailTel scrapped; rates to now apply according to new land-lease policy
• Railways can reclaim the piece of land after giving a two-month notice

Business Standard previously reported that the ministry was in touch with private network operators to explore a direct leap to 5G for its own network.

Industry executives said the move to allow licensing of railway land to private entities for the installation of telecom towers shall bring down costs, boost efficiency, and help better grid planning. Allowing related infrastructure, such as pole mounts and other cells, would help develop infrastructure holistically, they said.

“At a time when both Reliance Jio and Bharti Airtel are scouting for land to set up 5G towers and strengthen local networks, the move will help a lot, especially in towns and the rural hinterland where habitations often radiate outwards from a railway station at the centre. Allowing greater flexibility to set up infrastructure shall take care of a lot of planning headaches," said a senior executive at a telecom service provider.

“This is a welcome move, and has been a long-standing demand of the industry," said Tilak Raj Dua, director general of the Digital Infrastructure Providers Association.

But industry executives pointed out that some issues still exist. The latest guidelines mandate that companies putting up telecom towers won't be allowed to use them for advertisements, even as the Indian Railways has reserved the right to use the towers for advertisements, for itself.

"If towers are being installed and maintained by private companies, what’s the problem if they look to use them for diversifying their income streams?" asked a senior executive at a tower installation company.

Moreover, the policy allows the Railways to reclaim the piece of land whenever required, just by giving a two-month notice — a clause was enforced on RailTel in 2016, too.