The Telecom Regulatory Authority of India (TRAI) is examining pricing issues that telecom companies are facing in deploying networks at the Adani Group-owned Navi Mumbai International Airport (NMIAL). The review was initiated following intervention requests from the industry body Cellular Operators Association of India (COAI) on Wednesday, 21 January 2026.

TRAI's Response to Industry Concerns

TRAI Chairman Anil Kumar Lahoti confirmed that COAI approached the regulator to intervene in the pricing disputes. The regulator has sought detailed information about historical pricing agreements between telecom operators and infrastructure providers.

"The letter that COAI has written has raised four issues. Three of those pertain to right-of-way. There is one issue regarding the pricing. We have asked for certain details from COAI regarding how they have entered into agreements in the past. We will study those, and then we will take further action," Lahoti stated.

The Chairman emphasized that TRAI does not require any specific reference from the government and can proceed with the case based on the industry body's complaint.

COAI's Allegations Against NMIAL

The Cellular Operators Association of India, representing major telecom service providers including Bharti Airtel, Reliance Jio Infocomm, and Vodafone Idea, reached out to the telecom department for regulatory intervention. According to COAI's complaint, member telecom service providers approached Navi Mumbai airport seeking requisite approvals to deploy their telecom networks.

"However, contrary to the statutory framework under the Telecommunications Act, 2023, and the RoW Rules 2024, NMIAL has declined to grant the necessary permissions," COAI alleged.

NMIAL's Counter-Response

Navi Mumbai airport strongly disputed COAI's allegations, stating that IBS telecom infrastructure for mobile networks was procured and installed after multiple discussions with individual telecom service providers and government-owned BSNL. The airport confirmed that the infrastructure is currently in the advanced phase of testing.

"We are rigorously following up with TSPs to conclude the discussions. We welcome individual TSPs to discuss and mutually agree on rates. However, we will not give in to any cartelisation in this regard," NMIAL stated.

Regulatory Framework and Next Steps

The Right-of-way (RoW) rules mandate the deployment and operation of telecom infrastructure by service providers on both public and private property. TRAI's examination will focus on ensuring compliance with these statutory requirements while addressing pricing concerns raised by the telecom industry.

The regulator's investigation will analyze historical pricing agreements and determine appropriate regulatory action based on the findings. This case highlights the ongoing challenges in balancing infrastructure costs with regulatory compliance in India's rapidly expanding telecom sector.

The Telecom Regulatory Authority of India (Trai) finds itself in an unprecedented situation, unable to formally register its new head office building two years after construction, due to an ongoing financial dispute with the state-owned developer. The regulatory body, which oversees India's telecommunications sector, has been operating from the new premises since May 2024 but lacks legal ownership due to unresolved payment disagreements.

Financial Dispute Details

The conflict stems from Trai's dispute with NBCC (India) Ltd, the state-owned developer under the housing ministry that constructed the office space. The developer has demanded ₹56.8 lakh in interest charges for allegedly delayed payments by the regulator, creating an impasse that prevents the mandatory clearance required for formal registration.

According to officials, when the office premises were handed over to Trai in May 2024, the building was in an incomplete state. Several upper floors in Tower F were still under construction, leading to water seepage into various areas of the Trai premises and damaging interior fixtures and furniture. This prompted the regulator to withhold ₹30 lakh against the damage and incomplete work, which was eventually released in December 2024 upon completion of the construction.

NBCC's Position and Terms

NBCC maintains that its interest charges are legitimate under the agreed terms. The developer's spokesperson confirmed that the sale of commercial space at the World Trade Centre, Nauroji Nagar was conducted through open e-auction, with clear stipulations regarding delayed payments. The agreement specified that any payment delays would incur interest at the rate of SBI Highest MCLR + 2%, calculated from the due date until actual payment.

The developer stated that Trai had delayed payment of an installment, justifying the interest levy. NBCC emphasized that the No Objection Certificate (NOC) can only be issued after receipt of complete payment, including the disputed interest amount.

Registration Challenges and Funding Pressures

The registration impasse creates significant operational challenges for Trai. Without formal registration, the regulator cannot legally establish ownership or access the project's remaining funds required for stamp duty and other statutory charges. Additionally, the communications ministry has been pressing Trai to return unspent funds, making formal building registration essential for the regulator's financial management.

Trai relies on grants from the Department of Telecommunications (DoT) under the communications ministry for its operations. For the new building project, Trai received additional grants from DoT during the construction phase, which began after government approval in November 2020.

Broader Regulatory Challenges

Beyond property registration issues, Trai faces limitations in its regulatory powers. The regulator's weak enforcement authority has hampered its ability to address service quality issues and control spam calls effectively. Under the Trai Act 1997, the regulator's powers are primarily regulatory, advisory, and enforcement-focused through directions, with limited ability to enforce orders independently.

Trai has recently sought amendments to strengthen its enforcement capabilities and has proposed changes to its funding model. The regulator argues for operational independence similar to other regulatory bodies like SEBI, RBI, and IRDAI. In its FY25 annual report, Trai suggested that utilizing a portion of license fees from regulated entities as administrative charges could eliminate the need for government grants, providing necessary flexibility for independent functioning.

The housing ministry is reportedly examining the matter, though officials express concern that waiving interest for one entity could set a precedent for similar demands from others. The resolution of this dispute remains critical for Trai's operational autonomy and legal standing regarding its primary office infrastructure.