Anne Bouverot, Director General, GSMA, offered the following statement in anticipation of the expected 1800, 900 and 800 MHz spectrum auction in India later this month:

“The absence of bidders for the 1800and 900MHz and a lone bidder in 800MHzfor the spectrum auction earlier this month, which includes frequencies that remained unsold fromthe November 2012 auction, is a clear signal that mobile operators are not willing to pay unreasonably high prices for spectrum. The GSMA reiterates its call to the Indian Government not to use spectrum as a means to raise short-term revenues and instead to significantly reduce the proposed reserve prices for the upcoming auction. Focus should be on the longer term and creating a healthy business environment where the mobile industry can invest with confidence.

“Acquiring spectrum is only the first step before making the necessary investment in network deployment to deliver mobile services to consumers. Unreasonably high reserve prices lead to spectrum remaining unsold, delays in the delivery of mobile services and ultimately, an increase in consumer tariffs. The multiplier effects of increased mobile penetration are well documented; a recent GSMA study shows that a 10 per cent expansion in mobile penetration increases productivity by 4.2 percentage points1. These benefits will be particularly felt in a country like India, which has a significant and largely unconnected rural population.

“We call on the Indian Government to restore a sustainable environment for investment in telecoms and continue the success story of mobile, which has already had a transformative impact on the country’s society and economy over the past decade.”