MRO-Minimum Roll-out Obligations
The full form of MRO in telecom is Minimum Roll out obligations.
When an operator gets operating licence for a particular frequency band, e.g. 1800 MHz band then that operator has to comply Minimum Roll-out Obligations.
Here operator has to do roll out (site roll out and provide network services) in District Headquarters (DHQ), Block Head Quarters (BHQ), Towns or SDCAs** (Details of SDCA is mentioned in the end of this blog) based on different frequency band.
The test procedures and the roll out phases all are set by Department of Telecommunications (DoT).
The License owner shall make its own arrangements for all infrastructures involved in rolling out of the network and shall be solely responsible for installation, networking and operation of necessary equipment and systems.
MRO compliance is not accepted if done by using technology of network sharing Intra Circle Roaming.
(This roll out obligation is separated in phases and in each phase no of DHQ, BHQ or towns to be covered is different.
Suppose in a circle there are 33 districts, then to meet 1st phase of MRO-10% DHQ roll out obligation an operator has to complete services in 4 DHQs.
10% of 33 DHQs is 3.3. We can’t do 3, instead we have to complete 4 District Head Quarters.
Any operator which is failed to meet any phase of MRO will attract huge penalty.
In the above picture GREEN colour shows acceptable coverage area for a particular DHQ/BHQ/Town boundary.
Planning, testing procedures and details of reports and other related things of MRO we will discuss separately.
Here let us first discuss what are the phases we have to obey for Minimum Roll-out Obligations and finally about penalty details.
Phases of MRO:
For 700 MHz, 800 MHz, 900 MHz & 1800MHz bands:
- For Non Metro Licensed Service Area (LSA or Circle)
Phase 1: Coverage of 10% District Headquarters (DHQ)s/ Towns by the end of first year.
Phase 2: Coverage of 50% DHQs/ Towns by the end of three years.
Phase 3: Coverage of 10% Block Headquarters (BHQ)s by the end of third year.
Phase 4: Coverage of additional 10% BHQs (Cumulative 20% BHQs) by the end of fourth year.
Phase 5: Coverage of additional 10% BHQs (Cumulative 30% BHQs) by the end of fifth year.
For all cases time duration is considered from effective date of license or date of assignment of spectrum whichever is later.
2. For Metro Licensed Service Area (LSA or Circle)
The roll-out obligations for coverage in metro LSAs shall be coverage of 90% of the LSA within one year from the effective date of license or the date of assignment of spectrum, whichever is later.
For above two cases frequency band 900MHz and 1800MHz are treated as same.
For 2100MHz band:
- For Non Metro Licensed Service Area (LSA or Circle)
Phase 1: 50% of DHQs in the LSA out of which 15% of DHQs should be in rural SDCA within three (3) years.
Phase 2: Additional 10% of DHQs in the LSA within four (4) years.
Phase 3: Additional 10% of DHQs in the LSA within five (5) years.
For all cases time duration is considered from effective date of license or date of assignment of spectrum whichever is later.
2. For Metro Licensed Service Area (LSA or Circle)
The licensee required to provide required street level coverage using the spectrum in 2100 MHz in at least 90% of the LSA within five (5) years from the effective date of license or date of assignment of spectrum,whichever is later.
For 2300 MHz and 2500 MHz bands:
- For Non Metro Licensed Service Area (LSA or Circle)
The licensee of 2300 MHz / 2500 MHz shall ensure that at least 50% of the rural SDCAs are covered within five (5) years of the Effective Date using 2300/ 2500 MHz band of license or date of assignment of spectrum, whichever is later.
2. For Metro Licensed Service Area (LSA or Circle)
The licensee is required to provide street level coverage as prescribed in the test schedule in at least 90% of the LSA within five (5) years of the Effective Date of license or date of assignment of spectrum, whichever is later.
Penalty in MRO:
Any Operator or License owner fails to comply Minimum Roll-out Obligations, it attracts phase wise huge penalty.
The penalty is applicable for each phase separately. If an Operator fails to meet prescribed period of time for two phases, then below mentioned penalties will be applicable twice.
For 700 MHz, 800 MHz, 900 MHz,1800MHz & 2100MHz bands:
- @ Rs. 5 Lakhs per week for first 13 weeks.
- @ Rs. 10 Lakhs for the next 13 weeks and thereafter
- @ Rs. 20 Lakhs for 26 weeks
subject to a maximum amount of Rs. 7.00 Crores for each phase.
For 2300 MHz and 2500 MHz bands:
- @ Rs.15 Lakhs per week for first 13 weeks.
- @ Rs. 30 Lakhs for the next 13 weeks and thereafter
- @ Rs. 60 Lakhs for 26 weeks
subject to a maximum amount of Rs. 21.00 Crores for each phase
For each of the above two cases delay more than 52 weeks in a phase will impose maximum penalty amount and assigned spectrum may also be withdrawn.
**SDCA:
Short Distance Charging Area (SDCA) is a telecom area which is smaller than the size of a district.
DoT (Department of Telecommunications) configures entire telecom network in India in to Telecom Circles (LSA).
Circles are further categorized into Switching Area (SSA) and Long Distance Charging Area (LDCA) which is equivalent to size of a district.
LDCA is further divided into Short Distance Charging Area (SDCA) which is smaller in size than district and Taluka.
To know why in MRO ICR is not accepted you may read my blog-
## Reference: Notice Inviting Application (NIA);No: 1000/06/2016-WF
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