"The GSMA is very concerned over Trai's (Telecom Regulatory Authority of India) recommendation to set a starting price of $1.7 billion (roughly Rs. 11,556 crores) per MHz for pan-Indian 700 MHz spectrum. India has one of the lowest average revenues per user across the world ($2.45 at the end of 2015)," GSMA chief regulatory officer John Giusti said.
"High reserve prices and an unrealistic pre-determination of spectrum value could also reduce the willingness of potential bidders to buy the spectrum," he added.
The Trai recommended a reserve price of Rs. 1,595 crores for 700 MHz in the Delhi circle.
"In Australia, an unrealistically high reserve price resulted in a valuable portion of the 700 MHz spectrum left unsold and unused. Unused or under-utilised spectrum benefits neither the economy nor society," the global association of telecom players said.
It said more the mobile operators pay for a spectrum licence, less the capital 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," he said.
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