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The telecom department has overhauled the definition of “mobile tower” in its new notification of right of way (RoW) rules released Wednesday. Experts say the move will likely relieve the telecom tower companies from attracting property tax.
This marks a victory for the telecom tower industry which had been for long urging the government to separate India’s 8 lakh telecom towers from the property they are erected on.
According to a notification released by the Department of Telecommunications (DoT) on Wednesday, “mobile tower” shall be defined as “any above-ground contrivance, including that which may be dismantled and reassembled at another location, used for carrying, suspending or supporting a telecommunication network, but does not include a pole.”
“DoT has clearly defined towers as movable or portable infrastructure separate from the property it is erected on – whether it is public or private land,” Manoj Kumar Singh, Director General of the Digital Infrastructure Providers Association (DIPA) told ET.
“This means towers shall be exempt from property tax levy which has been a cause of worry for tower companies for almost decades now,” he said.
For private properties, no permission is needed to establish a mobile tower or pole from the property owner. In case, the infrastructure company fails to reach an agreement with the property owner, the former “may apply to the District Collector or designated officer through the portal to determine whether such installation or right of way is necessary for public interest,” the notification said.
The Ministry of Communications has announced that these rules will be applicable to all infrastructure projects notified by the central government with effect from January 1, 2025.
Further, the government has also revamped RoW rules setting strict timelines for streamlining permissions, capping charges on deploying infrastructure and other provisions.
For instance, local municipalities and other public entities are required to grant RoW permissions within 67 days of receiving applications. If a public entity fails to respond within the specified timeline, permissions will be deemed granted, reducing bureaucratic delays, Singh said.
Special provisions for the installation of small cells on street furniture. For installation of small cells, Rs300 per annum shall be charged for urban areas and Rs250 per annum for rural areas per street furniture, the notification said.
All applications and communications will be processed through a digital portal, enhancing transparency and efficiency.
“These changes are expected to fastrack 5G deployments, enable densification of networks through small cell penetration and allow for adaptable network solutions. By streamlining processes and providing clarity on charges, these rules will significantly accelerate the rollout of next-generation networks, including 5G and beyond,” Singh explained.
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