The Telecom Regulatory Authority of India (TRAI) has announced that it has received applications from five entities interested in becoming empanelled as Digital Connectivity Rating Agencies (DCRAs). These agencies are expected to evaluate properties based on the standards set by the regulator. TRAI's Chairman, Anil Kumar Lahoti, indicated that the launch of the entire system is anticipated soon and suggested that the first round of empanelment might occur as early as this month. He also mentioned that some properties have started inquiring about the rating system. The proposed 'star rating' system is designed to assess properties based on their digital connectivity, following a similar approach to that of green building or energy efficiency ratings. Both new and existing buildings are included in this framework, with TRAI hoping that it will encourage builders to retrofit older structures to enhance their digital connectivity and potentially secure a better rating.
To support this initiative, TRAI is working on developing a digital platform, and final assessments of the properties will be accessible on the regulator's website.
Digital connectivity rating system purpose
Over time, it is expected that this digital connectivity rating system will serve as a significant selling point for developers and builders, while also helping buyers and tenants make informed decisions amidst rising connectivity demands in homes and workplaces. In urban areas, where reliable connectivity can be challenging, Lahoti remarked on the efforts to implement this rating framework and highlighted the initiation of the empanelment process.
He elaborated that the call for applications is currently open, and the interest from the five agencies seeking to become DCRAs is noteworthy. A draft manual for the rating system has been released to ensure a standardised and transparent process for all involved parties. Once established, property managers will have the opportunity to contact these agencies for ratings.
Previously, TRAI released a draft manual for assessing property ratings concerning digital connectivity under the Rating of Properties for Digital Connectivity Regulations, 2024. This manual aims to promote uniform assessment methodologies for DCRAs and act as a guideline for property managers when creating digital connectivity infrastructure.
How building will be judged
Buildings will be judged based on various parameters as outlined in the regulation, such as f iber readiness, mobile network availability, in-building solutions, and Wi-Fi infrastructure, among others. Earlier in the year, TRAI had submitted recommendations to the government about the 'Rating of Buildings or Areas for Digital Connectivity,' with the goal of fostering an ecosystem for developing digital connectivity alongside construction activities.
The Rating of Properties for Digital Connectivity Regulations, 2024, was also released in October of the prior year, establishing a framework for property ratings based on digital connectivity. The goal is to promote the enhancement of digital connectivity through collaborative and sustainable practices.
Lahoti noted that the regulations and policy framework complement each other without being dependent. He confirmed that the regulations are already in effect, allowing the property rating process to start while the policy framework progresses simultaneously. Industry estimates suggest that over 80 percent of data consumption occurs within building premises, making strong and reliable digital connectivity crucial for meeting consumer expectations. Lahoti emphasized that in-building solutions are essential, as they complement the network services offered outside by telecom providers.
Important for 5G and 6G
He acknowledged that digital connectivity is increasingly vital, especially with the growth of 5G and the future emergence of 6G networks, which utilize high-frequency bands for fast data delivery but may face challenges from building materials. Lahoti pointed out that potential buyers or renters may face connectivity issues when searching for properties, underscoring the importance of addressing such challenges. He urged property developers to pivot toward solutions that enhance connectivity within buildings.
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Inputs from PTI