DoT modifies mobile towers and lessens telecom companies' property tax cost

The telecom department's redefinition of 'mobile tower' in the new right of way rules is a significant development. By distinguishing towers from the properties they occupy, this change exempts them from property tax and simplifies the permissions process for infrastructure projects.

This approach aims to facilitate faster 5G deployment and enhance network densification, ultimately improving connectivity and service availability. In its revised right-of-way regulations, the telecom department has redefined "mobile tower," exempting them from property tax. This modification should expedite the rollout of 5G by simplifying authorisation procedures and cutting down on administrative hold-ups. The revised regulations will go into effect on January 1, 2025.

This decision is indeed a significant victory for the telecom tower industry in India. With around 800,000 telecom towers in the country, separating them from the property they are on addresses a long-standing request from the industry.

By exempting towers from property tax and easing permission processes, the government is supporting the infrastructure needed for faster 5G deployment and improved network services. This change can also encourage further investments in telecom infrastructure, benefiting both providers and consumers.