High spectrum prices will put pressure on telcos: GSMA

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SME Times News Bureau | 28 Mar, 2015
High prices will put increased financial pressure on telecom operators in India, which will have negative impact on consumers, global industry body GSM Association (GSMA) said in New Delhi on Friday.

"Unfortunately these high prices will put increased financial pressure on operators and ultimately have a negative impact on consumers, reducing the value derived from the spectrum and hindering future economic growth and social gain in India," said GSMA chief regulatory officer Tom Phillips.

India's biggest telecom spectrum auction ended on Wednesday after 19 days of rigorous bidding that brought Rs.109,874 crore to the government's kitty.

"The Indian government raised a record amount from the spectrum auction -- almost $18 billion. This outcome reflects the commitment of national mobile operators to invest in India, but it was also the result of pressure on operators to retain existing holdings to ensure service continuity for their customers," he said.

Phillips said that with the auction now concluded, GSMA looks to the Indian government to enable a business and regulatory environment built around trust and certainty, which will facilitate fresh investment by mobile operators to expand mobile broadband services throughout the country.

"Mobile connectivity is a critical enabler for building a digitally-empowered society and knowledge economy and must inevitably be at the heart of Prime Minister (Narendra) Modi's vision for a truly 'Digital India'," he added.