GSMA seeks reduction in spectrum reserve prices

The GSM Association (GSMA), the body representing more than 800 of the world's mobile operators, has called for a reduction in spectrum reserve prices, in the upcoming auction of the radio waves. The Indian government was expected to auction spectrum by the end of this month, even though specific dates were not announced.

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 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,'' 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.

A recent GSMA study shows that a 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points. These benefits will be particularly felt in a country like India, which has a significant and largely unconnected rural population.

''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,'' Bouverot added.