Business
High spectrum prices will put pressure on telcos: GSMA
New Delhi, March 27
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 here 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,â€
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.