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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