The Telecom Regulatory Authority of India (TRAI) has released the “Rating of Properties for Digital Connectivity Regulations, 2024 “. The full text of the Regulations is available on TRAI’s website at http://www.trai.gov.in.
To provide policy and regulatory triggers for addressing the issue of the quality of digital connectivity inside buildings, the Authority submitted recommendations to the Government on “Rating of Buildings or Areas for Digital Connectivity” on 20 February 2023. The recommendations aim to create an ecosystem for co-creations of Digital Connectivity Infrastructure (DCI) as a part of any development activity. Further, to enable the co-creation of DCI in Buildings or Areas, the Authority has recommended including DCI development as a part of Model Building by-laws and suggested a draft chapter titled “Digital Connectivity Infrastructure in the Buildings” covering the requirement of DCI for new and existing buildings. This assumes importance as most data consumption occurs indoors or on public premises. In contrast, the quantum & speed of data consumption has seen exponential growth, more so with the advent of 5G technology.
As part of the aforesaid recommendations, the Authority also decided to establish a framework for rating buildings or properties for digital connectivity to promote the creation of good digital connectivity through a collaborative and self-sustainable approach.
Accordingly, these regulations are being notified to encourage and nudge property managers to provide a good digital connectivity experience to their existing and prospective customers. A property with better ratings will attract more users, buyers, or investors and thereby add value to it.
In India, there are 927.56 million wireless internet subscribers, compared to 42.04 million internet subscribers (as of June 2024) who have wired connectivity in their homes or offices. Thus, most of the population is currently dependent on wireless networks to access the internet.
Despite significant coverage of the 4G (LTE) network, the rollout of the 5G network, and the availability of more spectrum bands, the coverage and quality of digital connectivity inside buildings remain a major issue that needs to be addressed largely through collaboration between service providers and property managers.
The regulations have been finalized after following a detailed consultative process. A Consultation Paper on “Regulation on Rating Framework for Digital Connectivity in Buildings or Areas,” released on the TRAI website on 27 September 2023, invited written comments from the stakeholders. An Open House Discussion (OHD) through Virtual mode was held with the stakeholders on 18 June 2024.
The salient features of the regulations include the following:
- A Rating platform, an information technology system, and associated applications shall be set up or authorized by the TRAI to manage the rating of properties for digital connectivity as per provisions of the regulations. The rating process shall be implemented only through the rating platform.
- Any entity fulfilling the eligibility criteria intending to commence activity as a Digital Connectivity Rating Agency (DCRA) shall be impaneled by the Authority through registration on the rating platform.
- A property manager who intends to apply for the rating of his/her property of a 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.
- For the purpose of rating digital connectivity, the properties are classified into different categories: Residential, Government Properties, Commercial Establishments, Other private or public areas, Stadiums or Sports Arenas or spaces of frequent gathering, and Transport corridors.
- The DCRA shall disclose the fee to be charged and other terms and conditions, if any, to the property manager and obtain their acceptance before commencing any rating activity.
- DCRA’s fees shall be based on the category and classification of properties, DCRA’s responsibility under the provisions of these regulations, the complexity involved, the area of the property, etc.
- No telecom service provider shall enter into an exclusive arrangement or tie-up arrangement with any property manager to develop or access digital connectivity or digital connectivity infrastructure in their property.
- For the purposes of rating digital connectivity, Model Building Bye Laws (MBBL) issued by the Ministry of Housing and Urban Affairs (MoHUA) shall be referred to in cases where the MBBL of a State or Union Territory does not have provisions for digital connectivity infrastructure.
- DCRA shall evaluate the property and assign scores on the rating platform against each rating criteria and sub-criteria. The property shall be awarded a Digital Connectivity Rating of one to five stars. The detailed guidelines for awarding the score and process shall be issued separately as per the provisions of these regulations.
- The Authority shall notify us of the date the rating platform will be made live. Further, the Authority may provide an alternate mechanism for rating property until an online rating platform is developed.
These regulations shall apply to:
- 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.
- Digital Connectivity Rating Agency (DCRA), who may evaluate and award ratings for property under these regulations; and
- The service providers may enter into an arrangement with the property manager to develop or access digital connectivity or digital connectivity infrastructure.
The regulations shall come into force with effect from 25 October 2024. Source: PIB
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