The global association of mobile operators, GSM Association (GSMA) has raised concern over the final reserve price of the spectrum in the 2100 MHz band. Recently, the Telecom Commission finalised the reserve price of Rs 37 billion for the spectrum in the 2100 MHz band, which was 36 per cent higher than recommended by the Telecom Regulatory Authority of India (TRAI).

According to GSMA, the Telecom Commission’s decision to put up only 5 MHz of spectrum in the 2100 MHz band for sale in the auction, against TRAI’s suggestion of auctioning 20 MHz of spectrum, will further distort the outcome of the process to the disadvantage of the final consumers. It added that though the high reserve prices may generate short-term revenues for the government, they would negatively impact the development of the mobile networks in India and delay investment in infrastructure.

Meanwhile, according to GSMA Intelligence, the overall economic impact of mobile technology in India was equivalent to $115 billion in value-added terms, representing an economic contribution of around 5.5 per cent of India’s GDP in 2014.

However, the association believes that these forecasts will become actual results only if the mobile operators have the capacity to make the necessary network investment in India.