GSMA urges India to follow International best practice on spectrum auction.

Indian Government ought to reject short-termism and embrace international best practice, urges GSMA in an open letter to the Indian Government over the controversial TRAI's recommendations on 2G spectrum.

Anne Bouverot, director-general, GSM Association asserted in the open letter, "Spectrum, the radio waves upon which mobile operators depend, is the oxygen that gives life to mobile services. Unfortunately, the recent recommendations of the Telecom Regulatory Authority of India (TRAI) are not in line with international best practice, particularly as they propose to auction part of the available spectrum by end of August, and at an extraordinarily high price. While this may bring some additional money to the Treasury in the short term, it will stifle future investment and put at risk the promise of 'Broadband for All'."

The Indian market has been starved of spectrum for many years. TRAI’s recommendations, especially on ‘refarming’, will increase further this scarcity and negatively impact both the quality and availability of mobile services, particularly in rural areas, leading to significantly higher prices for consumers.

The open letter mentioned, to maintain the economy’s robust growth and increase the social and economic opportunities available to all citizens, India must continue to embrace free market principles and the latest advances in technology. Nowhere is this more important than in the delivery of mobile services. India has benefited immensely from the spread of mobile services, which have started to deliver crucial healthcare in previously un-served areas and bring first-class education through distance learning and online universities. It is fuelling the economy of India, improving the reach and effectiveness of India’s businesses, supporting trade and helping to create a new generation of entrepreneurs.

"We are proud of the contributions that mobile has made to India’s economy, as a result of significant investments to expand its reach across the country. Mobile already drives 3.6 per cent of India’s GDP and creates, directly or indirectly, as many as 10 million jobs. However, there is still more to do, and government policy will play a key role in future progress. We will only be able to connect everyone, including the 320 million mobile subscribers living in rural communities, to mobile broadband if the Government makes significant, additional spectrum available to operators, without delay and at a fair price," added the letter.