GSMA Calls For Reduction In Spectrum Reserve Prices

"Acquiring spectrum is only the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and ultimately, an increase in consumer tariffs. The multiplier effects of increased mobile penetration are well documented; a recent GSMA study shows that a 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points(1). These benefits will be particularly felt in a country like India, which has a significant and largely unconnected rural population.  

"Acquiring spectrum is only the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and ultimately, an increase in consumer tariffs. The multiplier effects of increased mobile penetration are well documented; a recent GSMA study shows that a 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points(1). These benefits will be particularly felt in a country like India, which has a significant and largely unconnected rural population.  

"We call on the Indian Government to restore a sustainable environment for investment in telecoms and continue the success story of mobile, which has already had a transformative impact on the country's society and economy over the past decade."

Notes to Editors
(1)Source: GSMA/Cisco report prepared by Deloitte: What is the impact of mobile telephony on economic growth? http://www.gsma.com/publicpolicy/wp-content/uploads/2012/11/gsma-deloitte-impact-mobile-telephony-economic-growth.pdf

About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world's mobile operators with more than 230 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers and Internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities. The GSMA also produces industry-leading events such as the Mobile World Congress and Mobile Asia Expo. 

For more information, please visit the GSMA corporate website at www.gsma.com or Mobile World Live, the online portal for the mobile communications industry, at www.mobileworldlive.com