New Delhi: Expressing concern over Telecom Commission (TC) yet to take a decision on reducing Trai's recommended price for spectrum, global telecom association GSMA on Sunday said high prices are a "major disincentive" to future investments in India.
    
"If the prices remain the same, they present a major disincentive to future investment in India and will threaten the country's leadership in mobile technology," the GSMA said in a statement.
    
It further said that "the GSMA is greatly concerned that the Telecom Commission has not made a decision to reduce the high reserve price levels recommended by the Trai".
    
The Telecom Regulatory Authority of India (Trai) has proposed Rs 3,622.18 crore for one megahertz (MHz) as base or minimum price for pan-India spectrum for auction.
    
This suggested price is around 10 times higher than the floor price at which the former Telecom Minister A Raja had allocated spectrum and licences in 2008.
    
The TC deliberated on the base price suggested by Trai on May 26 and felt an analysis needs to be made and presented to Empowered Group of Ministers (EGoM) on the impact of spectrum price on certain parameters that have been worked out.
    
The EGoM may early next month decide on the base price for auction of telecom spectrum.
    
"To ensure that India's spectrum policy meets the demands of society both now and in the future, we urgently call on the Trai and the members of the EGoM to listen to the advice given by business leaders, economists and the mobile industry, in setting a fair price for new spectrum, before making a final decision," said Anne Bouverot, Director General of the GSMA.
    
The association also welcomed the TC's decision to release more spectrum in each circle in the 1800 MHz band, double the level recommended by the Trai.

(Agencies)

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