GSMA urges Indian government to reconsider 700 Mhz band pricing

The GSM Association (GSMA) has urged the Indian Government to work with the regulator to re-calibrate spectrum pricing for the 700 MHz band after the latter failed to sell any of the critical 700 MHz band in the recently concluded spectrum auction. The global telecom group has urged governments worldwide to reassess its approach to spectrum auction reserve prices following the outcome of the Indian auctions.

• Make Telecom Talk My Trusted Source
• 
• 

John Giusti, Chief Regulatory Officer, GSMA said that timely deployment of this spectrum will expand the reach of mobile broadband services and deliver positive social and economic benefits to the country’s citizens, creating a truly digital India.

The government had put 770 Mhz of spectrum in the 700 Mhz band at a reserve price of Rs 11,485 crore per unit. Indian telecom operators gave this super premium band a miss due to high prices. The airwaves in 700 Mhz band is considered the best to offer higher coverage requiring less capital expenditure by service providers.

“The GSMA is concerned that, after the Indian auction, none of the 700 MHz band can be used to expand mobile broadband coverage to Indian citizens. As we had cautioned, the spectrum went unsold because the reserve prices for this highly sought-after band were set at an unrealistically high level of more than US$60 billion,” Giusti said.

In many markets, mobile operators are struggling to justify the business case for purchasing spectrum at high reserve prices, as proven in India, as well as in the 700 MHz auctions in Australia and Senegal, GSMA said.