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GSMA asks government to include road map for 3G spectrum auction in its 100 days agenda

June 25, 2014

GSM Association (GSMA) has asked the Indian government to include finalising the road map for next round of 3G spectrum auctions in its plan of action for the first 100 days.

The London-based mobile operators' lobby group, in its letter to the telecom secretary, has stated that allocation of additional spectrum in the 2100 MHz band is critical to ensure full benefits of 3G services to users, considering that no operators has so far managed to achieve a nationwide 3G coverage.

GSMA believes availability of additional spectrum in the 2100 MHz band would help service providers in expanding their 3G footprint, which will boost the overall mobile broadband growth in the country.

Recently the new government at the centre in India has announced its road map for the initial 100 days of governance. It includes finalising timelines for auction of spectrum in the 700 MHz, 800 MHz, 900 MHz and 1800 MHz bands. However, no information regarding auctioning of spectrum in the 2100 MHz band, which is used for offering 3G services in India, has been communicated.

The GSMA has urged the Department of Telecommunications (DoT) to take immediate steps to migrate current users in the 2100 MHz band, primarily the defence forces, to make additional 3G airwaves available commercially in line with the internationally harmonised band plan. Earlier, the Cellular Operators Association of India (COAI), the industry body representing the Indian GSM operators had also put forward a similar request to DoT. COAI had asked the department to persuade the armed forces for swapping 15 MHz of spectrum in the 2100 MHz band with an equivalent quantum of airwaves in the 1900 MHz band. The vacated spectrum can then be auctioned to mobile operators.

Further, the GSMA has stressed that clarity on India's plans to auction 700 MHz spectrum, which is best suited for 4G services, would also send a strong signal on the government's plans to deploy mobile broadband in the country in a cost-effective manner. Spectrum allocation in the 700 MHz band is gaining strong momentum across Asian and Latin American markets, which in turn is paving the way for a globally harmonised devices market.

The GSMA’s letter to DoT also suggests a reduction in the telecom industry's annual payout to Universal Services Obligation Fund (USOF). As per the global telecom industry body, the current USOF levy at 5 per cent of operators’ annual revenue places a heavy burden on their books. The fee is very high when compared to 2 per cent in Columbia, or 1 per cent in Brazil.

Finally, the GSMA has advocated rationalisation of cost structures to provide affordable voice and data services across the country. Currently, operators in India face numerous charges, including licence fees, USOF levies, spectrum usage charges, service taxes and other telecom specific taxes that have serious bearing on end-users as well.

 
 

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