Telecom Lead India: As the Indian Government
considers the response of 12 May from its Telecom Regulator regarding spectrum
auctions, the GSMA urges the country’s leadership to reject short-termism and
embrace international best practice. India was recently predicted to be the second
largest-mobile broadband market in the world by 2016, a prospect which is now
in jeopardy.
To maintain the economy’s robust growth and increase the
social and economic opportunities available to all citizens, India must
continue to embrace free market principles and the latest advances in
technology. Nowhere is this more important than in the delivery of mobile
services.
Mobile is one of the most transformative technologies in
the world. India has benefited immensely from the spread of mobile services,
which have started to deliver crucial healthcare in previously un-served areas
and bring first-class education through distance learning and online
universities. It is fuelling the economy of India, improving the reach and
effectiveness of India’s businesses, supporting trade and helping to create a
new generation of entrepreneurs.
We are proud of the contributions that mobile has made to
India’s economy, as a result of significant investments to expand its reach
across the country. Mobile already drives 3.6 per cent of India’s GDP and
creates, directly or indirectly, as many as 10 million jobs. However, there is
still more to do, and government policy will play a key role in future
progress. We will only be able to connect everyone, including the 320 million
mobile subscribers living in rural communities, to mobile broadband if the
Government makes significant, additional spectrum available to operators,
without delay and at a fair price.
Spectrum, the radio waves upon which mobile operators
depend, is the oxygen that gives life to mobile services. Unfortunately, the
recent recommendations of the Telecom Regulatory Authority of India (TRAI) are
not in line with international best practice, particularly as they propose to
auction part of the available spectrum by end of August, and at an
extraordinarily high price. While this may bring some additional money to the
Treasury in the short term, it will stifle future investment and put at risk
the promise of Broadband for All”.
The Indian market has been starved of spectrum for many
years. TRAI’s recommendations, especially on ‘refarming’, will increase further
this scarcity and negatively impact both the quality and availability of mobile
services, particularly in rural areas, leading to significantly higher prices
for consumers.
Anne Bouverot, director general, GSM Association
