In Short:
India’s telecom regulator, Trai, will create a “rating platform” to evaluate properties based on their digital connectivity quality, with star ratings from one to five. This initiative aims to improve internet access in various settings like homes, offices, and public spaces, especially with the rise of 5G. Regulations will start on October 25, 2024, encouraging property managers to enhance connectivity for users.
New Delhi: The Telecom Regulatory Authority of India (TRAI) has announced the establishment of a ‘rating platform’ aimed at evaluating and rating properties based on the quality of their digital connectivity. This initiative is part of a broader framework designed to prompt property managers to prioritize a “good digital connectivity experience” for their customers. Properties will receive star-based ratings ranging from one to five, reflecting the quality of their digital connectivity as determined by scores awarded through this new system.
The properties subject to digital connectivity ratings will be categorized into various types, including Residential, Government Properties, Commercial Establishments, public and private areas, stadiums and sports arenas, as well as transport corridors, as stated by TRAI.
Challenges and Collaboration
In presenting the new rating framework, TRAI acknowledged that despite significant advancements in 4G and 5G network coverage, issues related to digital connectivity quality within buildings persist. TRAI emphasized that resolving these challenges will require close cooperation between service providers and property managers.
Framework Features
Key components of the regulation include the development of a rating platform, an information technology system, and associated applications authorized or established by TRAI to oversee the property rating process. Ratings will be generated solely through this platform.
Additional critical elements consist of the Digital Connectivity Rating Agency (DCRA), property managers, and service providers. The DCRA’s function will involve evaluating properties and assigning scores based on established criteria on the rating platform, leading to a digital connectivity rating ranging from one to five stars.
Implementation Timeline
These regulations are set to take effect on October 25, 2024. TRAI has underscored the significance of this initiative, noting that a majority of data consumption occurs indoors or in public spaces, with data usage experiencing exponential growth, particularly due to the introduction of 5G technology.
According to the regulator, “These regulations are designed to encourage property managers to provide a good digital connectivity experience for their existing and prospective customers. Properties that achieve higher ratings will likely attract more users, buyers, or investors, thereby enhancing their overall value.”
Current Digital Connectivity Landscape
As of June 2024, India boasts 927.56 million wireless internet subscribers compared to 42.04 million wired subscribers. This data indicates that the majority of the population relies on wireless networks for internet access.
Consultation and Framework Development
The regulations have been finalized following a comprehensive consultative process, which included releasing a discussion paper titled ‘Regulation on Rating Framework for Digital Connectivity in Buildings or Areas’ on the TRAI website on September 27, 2023. Stakeholders were invited to submit written comments during this period.
TRAI confirmed that an information technology system and associated applications will be authorized for managing the digital connectivity property rating process exclusively through the established platform. Any entity meeting eligibility criteria that intends to operate as a DCRA will be registered on this platform.
Fees and Conditions
Property managers wishing to have their properties rated must register on the rating platform, adhering to the specified format and fee structure defined by TRAI. The DCRA will disclose applicable fees and terms to the property managers and obtain their acceptance prior to commencing any rating activities.
Furthermore, TRAI has stipulated that no telecom service provider shall engage in exclusive arrangements or partnerships with any property manager for the development or access to digital connectivity or infrastructure within their properties.
For rating purposes, the Model Building Bye Laws (MBBL) issued by the Ministry of Housing and Urban Affairs (MOHUA) will be referenced in instances where state or Union Territory regulations lack provisions for digital connectivity infrastructure.
Future Guidelines
Further detailed guidelines regarding score assignment and the rating process will be issued separately, in accordance with the new regulations. TRAI will also announce the launch date for the rating platform, and until that time, may provide alternative mechanisms for property rating.
The new regulations apply to property managers seeking to have their properties rated for digital connectivity, either voluntarily or mandated under applicable laws, as well as to the DCRA, which will evaluate and assign ratings, and to service providers collaborating with property managers for digital connectivity infrastructure development.
