Metro Signal Jam: Telcos Pull Plug on Mumbai’s Underground Rates

Image Source: The Economic Times

In a breakthrough affecting millions of Mumbai Metro passengers, major telecom companies—Reliance Jio, Bharti Airtel, and Vodafone Idea—have refused to offer In-Building Solution (IBS) services for the rates submitted by ACES, the preferred partner of the Mumbai Metro Rail Corporation (MMRCL). The telcos have instead approached the MMRCL with a temporary, no-cost connectivity agreement pending the arrival of mutually agreeable commercial terms, sparking fears over continuous mobile coverage in the city's underground metro system.

Background: The ACES Contract

ACES India Pvt Ltd, which is owned by Riyadh-based ACES Co., has been awarded the contract for supply of cutting-edge 4G and 5G IBS infrastructure for Mumbai Metro Line 3, spanning 33.5 km and 27 underground stations.
The project seeks to provide seamless mobile and internet connectivity for the metro's approximate 1.6 million daily commuters.

Telcos' Objection to Commercial Terms

Reliance Jio, Bharti Airtel, and Vodafone Idea have officially communicated to MMRCL that they are unable to supply IBS services at the "unviable rates" provided by ACES.
In a April 7 letter, the operators reaffirmed their stand, mentioning financial non-viability as the prime cause of concern.

Proposed Interim Solution

The telcos have suggested providing connectivity to ACES' IBS network through the installation of their own hardware, not affecting metro commuters in the process.
This temporary measure would be extended "purely on a free of cost basis" until commercial terms are settled.
The operators explained that the payment for the usage of the IBS network would be initiated only from the time when a formal agreement is inked.

Impact on Metro Users

The deadlock could see the implementation of hassle-free mobile services in Mumbai Metro's subway stations and tunnels delayed if an amicable solution is not achieved early.
Telcos' interim proposal is intended to stop service disconnection for commuters while negotiations continue.

Stakeholders' Response

MMRCL has not yet made a public comment on the telcos' proposal.
No further comment was prompted by emails sent to the telecom operators at the time of reporting.

Industry Background

The per-station license fees in this project are said to be 2.5 times the highest of any Indian metro line, adding to the telcos' concerns regarding the commercial model.

ACES has experience of implementing similar solutions at large premises, such as Bangalore Airport and the Surat Diamond Bourse.

Sources: Economic Times, The Week, Metro Rail Today