Ofcom warns high spectrum reserve price could leave airwaves unsold

High reserve price could leave spectrum unused, curb network rollout: UK’s Ofcom

In an interview with Mint, Ofcom's group director for spectrum David Willis said reserve prices for spectrum must be set carefully to avoid unsold airwaves. He noted that 5G monetisation remains "a…

The Story in Brief

In an interview with Mint, Ofcom's group director for spectrum David Willis said reserve prices for spectrum must be set carefully to avoid unsold airwaves. He noted that 5G monetisation remains "a bit challenged" and that Indian telcos have stayed viable despite offering some of the world's cheapest mobile data.

Willis suggested India could adopt a balanced approach to satellite broadband approvals to expand connectivity, pointing to the UK's experience with over 1 lakh broadband connections through low-Earth-orbit satellites. He said spectrum auctions should focus on efficient allocation, not maximising government revenue.

The Indian Opinion

Indian telcos often cry foul over high reserve prices, while the government sees spectrum as a revenue source. Ofcom's advice, set reserves conservatively to avoid unsold stock, echoes what operators have long argued. But India's market is unique: low data prices already strain networks. The real test will be the next auction: if lower reserves still leave large blocks unsold, the problem isn't just pricing but demand. Will the government trade short-term income for long-term connectivity?


Source: livemint.com

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