New Delhi: Telecom operator Uninor on Thursday said that the government should release more spectrum as this would help firms expand their service offerings and help the market to grow further.
"One of the main barrier that is stopping the market from exploding is the availability of spectrum. The government should release more spectrum, which is crucial for the expansion of the market," Telenor Asia EVP and Head Sigve Brekke said. Telenor owns major stake in Uninor and is in the process to completely buyout Indian partners stake in the company.
Uninor had over 4 crore subscribers in six service areas - Andhra Pradesh, Bihar, Gujarat, Maharashtra, UP East and West. The company has bought spectrum for Assam but is yet to start operation there. Brekke said the company feels India is on the cusp of a great leap in mobile internet and the government should in partnership with the industry aid in its expansion.
Uninor CEO Morten K Sorby said that the government should help the industry to grow, which will lead to higher profitability and would also mean more taxes for the government and at the same time will lead to better services for the consumers.
He declined to answer whether the recommendations made by telecom sector regulator TRAI on spectrum pricing were on the higher side. "I think the government should also consider the views of the industry on this (reserve price of spectrum) issue so that there can be a better solution, which is profitable for both the sides," he added.
On Wednesday, Trai suggested a 10 per cent higher base price for the next round of spectrum auction in the 1800 Mhz band (2G spectrum) in view of the increasing data usage by consumers.
It recommended a price of Rs 2,138 crore per Mhz for the 1800 Mhz band. It also suggested a price of Rs 3,004 crore per Mhz for the premium 900 Mhz band, in which mobile signal covered about twice more area than 1800 Mhz band.
GSM industry body COAI appreciated recommendation made by TRAI, however, it expressed concern over the reserve price recommended by the regulator. "Recommendation to value the 1800 MHz spectrum at the previous discovered auction price may prove a bit of a dampener given that in this auction, contiguous spectrum is not available in this band."
COAI said the pricing of 900 MHz, at up to 2 times that of the 1800 MHz in the previous auction's discovered price, may also prove a dampener.
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