"The pricing of spectrum should reflect the internal capital of the Indian market and the fact the tariffs are very low in India. If you set prices which are too high for spectrum, money is not going to go into investments. There must be a proportion between cost for spectrum and the economic condition of the country," Vodafone Group CEO Vittorio Colao said here yesterday.
     
His comments came weeks after regulator Trai proposed a base price for sale of spectrum in seven bands, which could fetch up to Rs 5.36 lakh crore.
     
The spectrum sale, which is estimated to fetch more than double the total annual revenue of all telecom companies, that is Rs 2.54 lakh crore, is likely to be held in May/June. Colao said there should always be returns on investment.
     
"The return on capital is very important. We make a lot of money, but we also invest a lot of money and the gap between the two is sometimes not as much as people think. There is also a second thought sometimes that prices will go up if there is consolidation overtime.
    
"But if you look at the price (per minute), they are going down and down. So, when people are wondering around the prices in our sector, I think it's not fair," Colao added.