Spectrum auction to be made reasonable

Following the lack of bidders in the spectrum auctions held earlier this month, The Global System for Mobile Communication Association (GSMA) has asked the Indian Government to restore sustainable environment in favour of the bidders and avoid using the auction as sources of raising short term revenues. According to GSMA, the auction held earlier this month, which auctioned the frequencies that where unbidden from November 2012 auction saw only one participant. The SSTL group under the brand name MTS was the sole bidder while other operators were reluctant to participate citing the heavy costs tagged by the Indian Government.GSMA logo

Several mobile operators are not willing to pay such heavy prices and hence are not coming forward for bidding which is weakening the cash flow in mobile sectors. Unsold spectrum is causing increase in consumer tariffs and delays in delivery of mobile services. Spectrum bands in Delhi, Mumbai, and Karnataka are tagged with heavy prices and are remained unsold causing troubles to consumers in the area. To maintain connectivity the Indian Government needs to look into the issue and take necessary actions in favour of the mobile operators and its consumers .During the auction held in November 2012, out of the 120 bands available only 105 bands were up for bids. This cut down in spectrum with increasing mobile users could affect the network and jam it completely.  To avoid all these problems, the bands should be made available to bidders at reasonable charges so that they can bid for it. The Government should avoid using such auctions as means of raising revenues.

The Director General of GSMA, Ms. Anne Bouverot has issued a statement saying loss of bidders could affect the mobile sector greatly and in order to continue the success story of mobile industry and its impact on society the Government has to reduce the charges of spectrum.

Thanks Mrinalini

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