GSMA calls for reduction in spectrum reserve prices

The GSMA has asked the Indian government to reduce spectrum reserve prices in 1800 MHz, 900 MHz and 800 MHz.

Anne Bouverot, director general, GSMA said "The absence of bidders for the 1800 MHz and 900 MHz and a lone bidder in 800 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. The GSMA reiterates its call to the Indian Government not to use spectrum as a means to raise short-term revenues and instead to significantly reduce the proposed reserve prices for the upcoming auction. Focus should be on the longer term and creating a healthy business environment where the mobile industry can invest with confidence."

Acquiring spectrum is only the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and ultimately, an increase in consumer tariffs added Bouverot.

"We call on the Indian Government to restore a sustainable environment for investment in telecoms and continue the success story of mobile, which has already had a transformative impact on the country's society and economy over the past decade," said Bouverot.

The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world's mobile operators with more than 230 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers and Internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities.