Telcos Accuse Navi Mumbai Airport of Market Failure, Seek Trai Intervention on Costs
Telcos Allege Market Failure at Navi Mumbai Airport, Ask Trai to Cap Costs

Telecom Operators Petition Trai Over Navi Mumbai Airport Connectivity Issues

The Cellular Operators Association of India has formally approached the Telecom Regulatory Authority of India. They seek urgent intervention regarding mobile network infrastructure costs at public locations like airports. This move comes amid an ongoing standoff over connectivity at the newly operational Navi Mumbai International Airport.

Allegations of Monopolistic Practices and Market Failure

COAI represents major telecom service providers in the country. The association has accused the Adani Group-operated airport of creating an exclusive, monopolistic arrangement for in-building telecom infrastructure. They claim the airport is denying right-of-way permissions to licensed telecom operators.

SP Kochhar, the director general of COAI, wrote a detailed letter to Trai chairman Anil Lahoti on January 13. He described the situation as a clear market failure. Kochhar argued that the airport operator, though licensed only as a virtual network operator, has assumed control over essential in-building access infrastructure at a public facility.

This creates a monopolistic bottleneck, according to the telecom industry body. Without competitive constraints or cost-based regulation, the airport can impose excessive and non-transparent charges on all operators. Telecom companies have no alternative but to accept these terms if they wish to serve consumers at the location.

Travelers Face Connectivity Blackout at New Airport

The issue has significant practical implications for the traveling public. Passengers have been complaining about the complete lack of cellular connectivity since the airport began commercial operations on December 25. The root cause is the absence of any agreement between the airport authority and telecom service providers.

Both sides have failed to reach consensus on commercial terms for providing connectivity. This disagreement has left the airport essentially a dead zone for mobile phone users, despite being a major new transportation hub.

Telecom Operators Propose Regulatory Solution

In their petition to Trai, telecom operators have requested specific regulatory actions:

  • Establishment of a cost-based pricing framework for in-building telecom infrastructure
  • Implementation of appropriate price ceilings in locations with monopoly control
  • Ensuring public entities grant right-of-way permissions on a non-discriminatory basis
  • Mandating that any shared infrastructure be provided on regulated, transparent terms

Satya N. Gupta, a former principal advisor at Trai, supported the operators' approach. He stated that reaching out to the regulator was the correct step, describing the connectivity issues as a clear market failure. Gupta emphasized that Trai has both the power and mandate to fix cost-based charging in such situations.

Dispute Over Infrastructure Charges and Security Concerns

Telecom operators revealed in earlier communications that the airport operator quoted what they called exorbitant charges for providing connectivity. The figure mentioned was ₹92 lakh per month per operator. Operators argue that as licensed entities holding spectrum, they have legal authorization to offer connectivity based on Telecom Act rules.

The airport authority has presented a different perspective. A spokesperson for NMIA stated that they have regularly communicated with telecom companies and offered in-building services at charges aligned with industry standards. The airport currently provides free Wi-Fi to all passengers.

The airport emphasized security considerations, noting that airports are highly sensitive zones requiring frequent network servicing and maintenance. They argued that this is best managed by the airport operator with proper security clearances from aviation authorities. Involving third parties would increase response times for network issues, potentially causing service delays and passenger inconvenience.

A Pattern Emerging Across Public Infrastructure

This is not an isolated case, according to telecom operators. They report that third-party in-building service providers often secure exclusive deals with various public entities including airports, metro systems, and hospitals. These providers then leverage their monopoly position to demand what operators call super-normal profits or excessive rents.

Kochhar noted that at many public places, telecom service providers have accepted high charges under threat of exclusion. These charges continue to increase without any correlation to actual costs. A similar situation has developed at the Mumbai Metro Aqua line, where passengers have faced connectivity issues for three months due to unresolved commercial disagreements.

The telecom industry's petition to Trai represents a significant escalation in their efforts to address what they see as systemic problems in public infrastructure connectivity. The outcome could establish important precedents for how telecom services are provided in airports, metro systems, and other essential public spaces across India.