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GSMA asks for reduction in Spectrum prices

2 April 2013 425 views No Comment

GSMA has put forward that reduction in Spectrum is imperative for prosperous business in India. Spectrum reserve prices have to be lowered in the upcoming spectrum auction.

It was expected to be concluded by the Indian Government by the end of March 2013. Specific dates were not announced though. Global industry body has also insisted that spectrum should not be used as a way of raising short-term revenues.

These high Spectrum reserve prices become the reason why spectrums are not sold. This high price becomes the reason why mobile services are not provided efficiently and this same high price is the reason why tariffs are revised (raising the rates). It should rather create healthy business, a state when mobile companies can invest with full confidence and buoyancy.

“The multiplier effects of increased mobile penetration are well documented”, said a GSMA statement. According to  GSMA Director General Anne Bouverot ,“The absence of bidders for the 1800 and 900 MHz and a lone bidder in800 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,”

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