Indian government should boost mobile investment for broadband services: GSMA

NEW DELHI, INDIA: With the spectrum auction recently concluded, the GSMA looks to the Indian Government to enable a business and regulatory environment built around trust and certainty, which will facilitate fresh investment by mobile operators to expand mobile broadband services throughout the country.

“Mobile connectivity is a critical enabler for building a digitally empowered society and knowledge economy and must inevitably be at the heart of Prime Minister Modi’s vision for a truly ‘Digital India’,” said Tom Phillips, Chief Regulatory Officer, GSMA.

He also said that the Indian Government raised a record amount from the spectrum auction – almost US $18 billion. This outcome reflects the commitment of national mobile operators to invest in India, but it was also the result of pressure on operators to retain existing holdings to ensure service continuity for their customers.

“These high prices will put increased financial pressure on operators and ultimately have a negative impact on consumers, reducing the value derived from the spectrum and hindering future economic growth and social gain in India,” said Phillips.

The spectrum auction which ended recently has fetched over Rs 109874crore after 115 rounds bidding over 19 days. The government will get a minimum of Rs 28,000cr upfront payments as earnest money deposit.