High reserve price for spectrum auction disincentive to investment in India, says GSMA

Telecom Lead India: The GSMA has expressed its
concern over the high reserve price for spectrum allocation by the TRAI and
said that high prices are a “major disincentive” to future
investments in India.


If the prices remain the same, they present a major
disincentive to future investment in India and will threaten the country’s
leadership in mobile technology. The GSMA also believes that spectrum usage
charges should be kept at a minimum,” the statement said.


In a statement, the GSMA said that the fresh decision by
the Telecom Commission is a first step in the right direction for the Indian
people and economy, but is insufficient to meet the rising demand for mobile
services over the long term and is still at a lower level than what is
currently available.


In addition, the GSMA announced that it welcomes the
Telecom Commission’s decision to release more spectrum in each circle in the
1800MHz band, double the level recommended by the TRAI.


“To ensure that India’s spectrum policy meets
the demands of society both now and in the future, we urgently call on the TRAI
and the members of the Empowered Group of Ministers to listen to the advice
given by business leaders, economists and the mobile industry, in setting a
fair price for new spectrum, before making a final decision,” said Anne
Bouverot, director General of the GSMA.


Telecom industry body GSMA urges Govt to use international best


Recently, the GSMA urged the country’s leadership to
reject short-termism and embrace international best practice. India was
recently predicted to be the second largest-mobile broadband market in the
world by 2016, a prospect which is now in jeopardy.


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