
Short-Term Gain, Long-Term Pain' Approach to Spectrum Pricing Needs to End
London: John Giusti, Chief Regulatory Officer, GSMA commented on the Telecom Regulatory Authority of India's (TRAI) recommendations1 for spectrum pricing in the forthcoming auction of the 700MHz band:
The GSMA is very concerned by TRAI's recommendation to set a starting price of US$1.7 billion1 per MHz for pan-Indian 700MHz spectrum. India has one of the lowest Average Revenues Per User (ARPU) across the world (US$2.45 at the end of 2015). Combined with so far limited revenue contribution from data services, competitive pressure on operators' revenues and high capital expenditure2 to upgrade networks, this makes it more challenging for operators to recover from high spectrum prices. Spectrum's greatest value does not come from high sales prices, but rather from its use to expand social and economic opportunity for all India's citizens. In 2014 alone, the mobile industry contributed 6.1 per cent to India's GDP3.
The more mobile operators have to pay for a spectrum licence, the less capital is available to roll out new mobile networks. As the digital economy becomes increasingly important to India's future prosperity, we encourage greater focus on the long-term benefits of connecting more people in India to affordable mobile broadband, rather than on short-term financial gain.
High reserve prices and an unrealistic predetermination of spectrum value could also reduce the willingness of potential bidders to buy the spectrum. For example, in Australia, an unrealistically high reserve price resulted in a valuable portion of the 700MHz spectrum left unsold and unused. Unused or under-utilised spectrum benefits neither the economy nor society.
We respectfully ask the Indian Government and TRAI to keep in mind the objectives for releasing 700MHz spectrum - one of the most promising bands to expand the reach of mobile broadband services into rural areas - in the lead-up to auctioning this critical spectrum resource. Setting reserve prices at reasonable levels will be key to achieving the Digital India objectives, allowing operators to focus their resources on building the necessary infrastructure to deliver high-quality mobile services for Indian citizens.
-ENDS-
Notes to Editors
1 Link to TRAI recommendations: http://www.trai.gov.in/WriteReadData/WhatsNew/Documents/Recc_27_1_2016.pdf
2 Capex over the last four years totalled in excess of US$18 billion and is likely to increase as operators invest further in network coverage and increasingly in 4G network deployments. Source: Mobile Economy India 2015
3 Source: Mobile Economy India 2015
About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 250 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and Internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai and the Mobile 360 Series conferences.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Media Contacts
For the GSMA
Ayanica Sree (New Delhi)
+91 11 40501269
ASree@webershandwick.com
GSMA Press Office
pressoffice@gsma.com
Most recent headlines
04/09/2025
Monumental Sports & Entertainment (MSE), in collaboration with Dalet, has been a...
01/05/2025
NEW YORK LiveNow From Fox, Fox Television Stations' national news streaming service, has released viewing data showing the first quarter was the best quarte...
01/05/2025
The global installed base of Smart TVs and Connected TV (CTV) devices will reach 4.2 billion units by 2030, growing at a CAGR of 9.6% from 2.65 billion in 2025,...
01/05/2025
Samsung TV Plus has announced that it is expanding its existing lineup of more than 50 sports channels with five new free, ad-supported streaming television (FA...
01/05/2025
MELBOURNE, Fla. Carlo DiMarco has joined USSI Global as vice president of strategic marketing and growth, with responsibility for strategic business development...
01/05/2025
WASHINGTON The NAB has filed a wide-ranging rebuttal to proposals by the pay TV industry that the FCC delete and/or significantly change rules governing retrans...
01/05/2025
WASHINGTON The Corporation for Public Broadcasting has filed a lawsuit to stop the Trump administration from firing three of its board members, claiming the pre...
01/05/2025
HONG KONG Riedel Communications today said it has opened a new office in Hong Kong, enhancing its presence in the Asia-Pacific region....
01/05/2025
MUMBAI, India & BALTIMORE In a development that could advance efforts to bring NextGen TV to cellphones, FreeStream Technologies, Lava International and HMD hav...
01/05/2025
01 05 2025 - Media release Screen Australia empowers 100 distinctive Australian narratives
All The Boys Are Here writer/director Goran Stolevski and It s All...
01/05/2025
How PFX Delivered 750 VFX Shots in Just Four Months For Anthony Hopkins Thriller...
01/05/2025
Careline's New Wave Makeup Commercial Shot With URSA Cine 12K LF
Brie Clayton May 1, 2025
0 Comments
CAD Studios relies on large format, full fram...
01/05/2025
Stream all episodes ofLook Who's Hangry from April 29
An RT Player Original in partnership with Heinz...
01/05/2025
Here is your host, Patrick Kielty!
T naiste, Minister for Foreign Affairs and T...
01/05/2025
Exclusive interviews and un-seen footage feature in new two-part series...
01/05/2025
May brings more than just rainbows and sunshine - it's also time for fresh adventures and epic battles. This GFN Thursday spotlights 20 can't-miss games...
01/05/2025
RT Investigates reveals details of Christian Brothers who were senior leaders a...
01/05/2025
RT Statement
The Enterprise Resource Planning (ERP) project is one of the projects that was funded from the proceeds of RT 's land sale in 2017, the init...
01/05/2025
Watch our promo: RT Supporting the Arts | What's on
This May, RT is delighted to support Bealtaine Festival, Fastnet Film Festival, and Dublin Dance Fest...
01/05/2025
For Nicolas Simon, advancing the field of robotics is a personal mission that could change his siblings' lives.
Two-thirds of Simon's family members us...
30/04/2025
Film elements held at the Deluxe warehouse in March of 2015. Photo by Luis Silva...
30/04/2025
EA SPORTS FC 25 fans in Australia and Saudi Arabia, get ready to immerse yourselves in the beautiful game like never before. Spotify is excited to announce a n...
30/04/2025
The past year has been nothing short of a whirlwind for Tucker Wetmore. After th...
30/04/2025
Mexico's love for podcasts is no longer a trend-it's a lifestyle. With m...
30/04/2025
Slam poet Huda the Goddess wins 2025 Les Murray Award
30 April, 2025
Media releases
Australia for UNHCR and SBS are proud to announce that Huda Fadlelmawla...
30/04/2025
SBS, NITV and NIDA partner to empower the next generation of screen creatives
30 April, 2025
Media releases
SBS, National Indigenous Television (NITV) and ...
30/04/2025
By Joyce JC Cataldo
The media and entertainment industry is evolving faster than ever. Technology is shifting the way we create, distribute, and experience c...
30/04/2025
An image of Valencia, Spain, in the OneAtlas Living Library...
30/04/2025
NEWPORT BEACH, Calif. WPSD-TV, the NBC affiliate in Paducah, Ky., has selected Bitcentral's Central Control playout system to upgrade the station's mast...
30/04/2025
AMSTERDAM Zero Density, a global provider of virtual studio productions and on-air graphics, has appointed Baris Zavaroglu as its new CEO. Zavaroglu succeeds Of...
30/04/2025
The Avit Group, a forward-thinking audio-visual technology company, is bringing over 50 years of combined experience in delivering audio-visual design and insta...
30/04/2025
NXTGENbps will be showcasing its latest sustainable battery power solutions at this year's Media Production & Technology Show (MPTS), appearing alongside pa...
30/04/2025
Van Dyke skates and operates on Shoresy | photo by Dave Ferguson
Toronto-based Cinematographer Brett Van Dyke (Heartland, Jann, Carter) stepped into the rink...
30/04/2025
Leading provider of media playout solutions PlayBox Neo will exhibit a vast array of significant upgrades to its range of smart media innovations at CABSAT from...
30/04/2025
ITV Studios is renowned for its award-winning productions, including the reality TV phenomenon I'm a Celebrity Get Me Out of Here! Produced by Lifted Ente...
30/04/2025
The UK's presence at this year's CABSAT brings together 20 innovative companies under the GREAT Britain and Northern Ireland banner. From advanced infra...
30/04/2025
Lightware continues to strengthen its Environmental, Social, and Governance (ESG) initiatives by fostering diversity, inclusion, and community engagement within...
30/04/2025
LiveU is demonstrating for the first time in the UK, its revolutionary technological breakthrough in IP-video transport, LiveU IQ (LIQ ) and bringing its expand...
30/04/2025
Stand: A40
Calrec has been putting sound in the picture for more than six decades and is still pushing the boundaries of audio broadcasting with a full range o...
30/04/2025
Buckinghamshire New University (BNU) has opened its new virtual production studio, designed and integrated by CJP Broadcast. The installation equips students wi...
30/04/2025
Independent news producer in India focuses on delivering stories
nxtedition has supplied a complete newsroom system to Collective Newsroom, based in New Delhi,...
30/04/2025
Connecting the present, building the future
FOR-A, a cutting-edge video broadcast technology company backed by more than 50 years experience, will showcase it...
30/04/2025
DAD by NTP Technology reports a successful NAB Show in Las Vegas where the company focused on upcoming expansion options in development for its Thunder | Core a...
30/04/2025
CVP and Canon UK & Ireland are proud to announce the winning projects from the third annual Stories in Motion Young Filmmakers Awards, which took place on the e...
30/04/2025
Leading video software provider, Synamedia, today announced that beIN MEDIA GROUP ( beIN'), one of the foremost global sports and entertainment broadcasters...
30/04/2025
The Canadian Premier League (CPL) today launched a new-look website and app, offering supporters of Canada's men's domestic professional soccer league a...
30/04/2025
WASHINGTON In a wide-ranging press conference, Federal Communications Commission Chair Brendan Carr had both good and bad news for broadcasters, stressing that ...
30/04/2025
TORONTO Cignal TV is relying on Quickplay's Shorts tool for its recently launched Pilipinas Live Shorts service, available to millions of users of Pilipinas...
30/04/2025
NEW YORK Steve Lanzano will retire as president and CEO of the Television Bureau of Advertising at year-end, the group said....
30/04/2025
The news production tech provider nxtedition is reporting that it supplied a complete newsroom system to Collective Newsroom, an independent news producer based...