TRAI Unveils New Regulations to Standardize Digital Connectivity Ratings for Properties

The Telecom Regulatory Authority of India (TRAI) releases Regulations namely “Rating of Properties for Digital Connectivity Regulations, 2024 “. The full text of the Regulations is available on TRAI’s website at www.trai.gov.in.

To provide policy and regulatory trigger, for addressing the issue of quality of digital connectivity inside buildings, the Authority has submitted recommendations to the Government on “Rating of Buildings or Areas for Digital Connectivity” on 20^th February 2023. The recommendations are aimed to create an ecosystem for co-creations of Digital Connectivity Infrastructure (DCI) as a part of any development activity. Further, for enabling co-creation of DCI in Buildings or Areas, the Authority has recommended to include DCI development as a part of Model Building Byelaws and suggested a draft chapter titled “Digital Connectivity Infrastructure in the Buildings” covering requirement of DCI for new and existing buildings. This assumes importance as majority of data consumption takes place indoors or in public premises whereas the quantum & speed of data consumption have seen exponential growth, more so with the advent of 5G technology.

As a part of aforesaid recommendations, the Authority also decided to bring a framework for rating of buildings or properties for digital connectivity to promote creation of good digital connectivity through a collaborative and self-sustainable approach.

Accordingly, these regulations are being notified to encourage and nudge property managers for providing good digital connectivity experience to their existing and prospective customers. A property with better ratings shall attract more users, buyers or investors and thereby add value to the properties.

In India, there are 927.56 million wireless internet subscribers against 42.04 million internet subscribers (as of June’ 2024) having wired connectivity in their homes or offices. Thus, at present, most of the population is dependent on wireless networks to access the internet.

Despite significant coverage of 4G (LTE) network and rollout of 5G network, availability of more spectrum bands, the coverage and quality of digital connectivity inside buildings remains a major issue which need to be addressed largely through collaboration of service providers and property managers.

The regulations have been finalized after following a detailed consultative process through a Consultation Paper on “Regulation on Rating Framework for Digital Connectivity in Buildings or Areas” was released on the TRAI website on 27 September 2023 inviting written comments from the stakeholders. An Open House Discussion (OHD) through Virtual mode, was held with the stakeholders, on 18^th June 2024.

The salient features of the regulations include following:

1. A Rating platform, an information technology system and associated applications shall be set up or authorized by the TRAI for the purpose of managing rating of properties for digital connectivity as per provisions of the regulations The rating process shall be implemented through the rating platform only.
2. Any entity fulfilling the eligibility criteria intending to commence activity as Digital Connectivity Rating Agency (DCRA) shall be empanelled by the Authority through registration on the rating platform.
3. Property manager, who intends to apply for the rating of his/her property of minimum specified size, shall register on the rating platform, in such manner and format and upon payment of such fees, as may be specified by the Authority.
4. The properties, for the purpose of rating for digital connectivity, are classified in the different categories namely- Residential, Government Properties, Commercial Establishments, Other private or public areas, Stadiums or Sport Arenas or spaces of frequent gathering and Transport corridors.
5. The DCRA shall disclose the fee to be charged and other terms and conditions, if any, to the property manager and get their acceptance before commencement of any rating activity.
6. The fees charged by DCRA shall be based on the category and classification of properties, the responsibility of DCRA under the provisions of these regulations, the complexity involved, the area of the property, etc.
7. No telecom service provider shall enter into an exclusive arrangement or tie-up arrangement with any property manager for development or access of digital connectivity or digital connectivity infrastructure in their property.
8. For the purposes of rating for digital connectivity, Model Building Bye Laws (MBBL) issued by Ministry of Housing and Urban Affairs (MoHUA) shall be referred to in cases where MBBL of State or Union Territory do not have provisions for digital connectivity infrastructure.
9. DCRA shall evaluate the property and assign scores, on the rating platform, against each rating criteria and sub-criteria. Digital Connectivity Rating shall be awarded to the property starting from one star to five star. The detailed guidelines for award of score and process shall be issued separately as per provisions of these regulations.
10. The Authority shall notify the date on which the rating platform shall be made live. Further, the Authority may, till the development of online rating platform, provide an alternate mechanism for rating of property.

These regulations shall apply to –

1. 1. Property Managers who intend to get their property, of minimum specified size, rated for digital connectivity, either voluntarily or under the provisions of applicable laws, rules or regulations.
   2. Digital Connectivity Rating Agency (DCRA), who may evaluate and award ratings for property under these regulations; and
   3. The service providers, who may enter an arrangement with the property manager for development or access of digital connectivity or digital connectivity infrastructure.

The regulations shall come into force with effect from 25^th October 2024.