For Healthy Business India Should Lower Spectrum Prices: GSMA

By March 26th, 2013 AT 12:32 PM

The GSM Association has called for a reduction in spectrum reserve prices, in the upcoming auction of spectrum. The Govt of India was expected to auction spectrum by the end of this month, even though specific dates were not announced.gsma

The global industry body has also urged the government not to use spectrum as a means to raise short-term revenues, and focus on creating a healthy business environment where the mobile industry can invest with confidence.

“The absence of bidders for the 1800 and 900 MHz and a lone bidder in800 MHz for the spectrum auction earlier this month, which includes frequencies that remained unsold from the November 2012 auction, is a clear signal that mobile operators are not willing to pay unreasonably high prices for spectrum,” GSMA Director General Anne Bouverot said.

Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and ultimately, an increase in consumer tariffs.The multiplier effects of increased mobile penetration are well documented, a GSMA statement said.

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Kunal GautamSSshanojEsmailArif Recent comment authors
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Arif
Arif

Govt should learn the lesson from 3G auction and failure of 3G penetration. And due to failure of 3G operators increased the tariffs in 2G.
This is ridiculous that Govt want to auction the spectrum which is already occupied by the operators.

Saurabh
Saurabh

Instead of cutting the price down Govt should either look to increase validity of the spectrum to 25 years instead of 20 and have flexible terms or if they consider reducing price, reduce validity to 15 or even 10 years from 20 years. The changes made should also be applied to those already bid for spectrum. They should also make sure that terms don’t get changed until the expiry. The third option can be have licenses for a period of 10, 15, 20 and 25 years and let the companies choose their time period. Set the price according to time… Read more »

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